Nothing better for financials than a FED hike pause. XLF daily chart is experiencing a 21/50 EMA crossover (purple converging with green line), has crossed above the Ichimuku cloud, and sits currently right at 200 day EMA (red line), which is also a key Gann level. XLF could reverse downward off this 200 day EMA, but there is a low volume profile above, so it has potential to rocket above into the next Gann line at 34.48. Given the apparent bullishness in the general indices, I give this bullish potential good odds.
Nevertheless, we are not out of the woods with financials in the longer run, should rates remain high, the odds of more financial sector defaults remains high.
Nevertheless, we are not out of the woods with financials in the longer run, should rates remain high, the odds of more financial sector defaults remains high.