Financial sector (XLF) at a top.
Financials (XLF as proxy) have posted our sought after spring to up-thrust set-up.
The Fed announces their usual round of shenanigans tomorrow (Wednesday at 2:00 p.m. EST), so anything can happen.
However, the top may be in for the current trading range: 22.00 – 30.50.
Will It Fail?
The December 3rd update mentioned we’re in spring position (within a larger up-thrust) and to expect some upward action.
Last session saw a push by XHB to move higher. That attempt backed off near the close.
What happens next?
Homebuilder’s ETF: XHB, Up-thrust and reverse
The XHB has reversed. Our chart shows a clear up-thrust and initial leg down.
Price action may or may not test before heading lower. There’s always a possibility of reversal back to new highs. However, the weekly chart (closing basis) shows an up-thrust and reversal on its time-frame as well.
The chart of BTU on a closing basis has included the Force Index readings for the last few waves down … and up.
Lessening pressure on the down-legs into the reversal is clear.
Nat-Gas: What’s going on?
We’re nearing winter and nat-gas is pushing lower. The usual excuses are provided about ‘temperatures moderating’ and so on.
That may be true for the moment. The real story behind the temperature change is best described in this report. The jet streams are shifting as a result of solar activity.
Biotech in Up-thrust
It’s an interesting picture. A price pattern that’s potentially as old as the market itself (spring to up-thrust); a measured move that is in near perfect symmetry.
Before the open
Junior Mining ETF (GDXJ): Headed Lower
If the chart of GDXJ has been read correctly and the pre-market action continues lower, GDXJ is poised for the downside.
9:23 a.m. EST
The semiconductor ETF appears to be in early stages of reversal.
Note the terminating wedge that has formed over the past six months. Within the last few days we have a nascent up-thrust.
CORN: Proxy for Panic
The corn futures report at this link, shows current progress is lagging behind last year. At this point, 11% of the crop is mature vs. 24%, on average. That’s down over 54% from last year.
In addition, Ice Age Farmer just released this report, indicating northern growing areas no longer have enough (and won’t get enough) ‘heat’ to mature the crops … it’s going to be a huge loss.
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