Categories
Financials

Ichimoku says : Financial is still not bullish

At the heart of the US govt. plan is to save the Financial industry and have them lead the rest of the companies out of the recession.

What I like about XLF is that it includes financial services firms with diversified business lines from investment management to commercial and investment banking.

In short, it is a good representative of the health of the Financial industry.

Look ing at the chart, we can safely say that there is no clear bullish signal from the Ichimoku chart yet (despite the recent rally).

In fact, I see heavy resistant ahead at the 9.43 level. This year, it has attempt to break through this level for 4 times and has failed to do so. There is still no short term catalyst that can reverse the situation in the banks. I believe, it willl retrace back to 7.40 over the next few weeks.

 

2009mar-select-sector-spdr-financial-800x600