Here is small portion of my Weekly Strategy Session from over the weekend, long before the market gave any hints at the rally today. I have provided an updated XLF chart. If the financials are to continue their 2012 success into next year, bulls must defend this 20-day moving average pullback. Considering this is New Year’s Eve, buy volume is running quite strongly today for bulls. Now they need follow-through.
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Moreover, the financials have been another major leader off the November correction lows, not to mention for all of 2012. Observing their sector ETF chart below, we can see a similar resilient pattern–Upper daily chart Bollinger Band puncture, followed by a pullback to the rising 20-day moving average that held true. Here, again, we have a rising 50 and 200-day moving average to give the bulls some credibility.
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