Friday, September 4, 2009

Deadcat Bounce continues as expected - Financials Weak

Low volume deadcat bounce continues...XLF which has been leading the market up failed to generate an OBV new high and has registered the beginning of a bearish candle pattern along with bearish volume tracks. Theoretically, financials should be stronger here than the market, however, clearly money has been flowing out of financials on this last rise. If financials go - then so market goes in my opinion.

  • Falling Three Methods: Falling Three Methods Candlestick example image from StockCharts.comA bearish continuation pattern. A long black (red) body is followed by three small body days, each fully contained within the range of the high and low of the first day. The fifth day closes at a new low.

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