Banking Index FAILED PATTERN

I’ve tried to be pretty consistent ..sometimes they work and sometimes they don’t. When the SELL pattern on the banking index appeared it was, in fact, a beauty.

however, after today’s close  would consider it a FAILED PATTERN.

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2 Comments on “Banking Index FAILED PATTERN

  1. Looks like you did not see my comment on you’re orig post….. which was…

    How do you decide to use the $bkx index for signals on the XLF, I see how the $bkx hit the 78.6 retracement a few days ago, but XLF blew past that last August…. is it because $bkx is a modified-market capitalization-weighted index?

    So would the fact that the two were not in sync cause you to question the pattern on $BKX?

    • Tim, apologize for the delay. the banking index and XLF should (the operative word) roll together pretty much the same so a SELL pattern on the XLF should be in/around the Banking Index but it won’t be a 1:1 correlation as they are weighted differently. that being said, i made a mistake and said XLF in stead of banking index. certainly apologize for any confusion. the patterns work and they fail .. this was a very nice SELL pattern on the banking index which got smoked. hope this helps and thanks for the dialogue.

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