XLF – Financials – July 01, 2023

Trust that everyone enjoys the long weekend enjoying the Birth of our Republic.

Question, when is the last time you hear a politician refer to the United States as a Constitutional Republic?

I pledge allegiance to the flag of the United States of America and to the _______ Republic or Democracy for which it stands? We know the answer …

Anyhoo … enjoy the weekend and the amazing country that we live. Be safe out there!

Financials .. the banks lead us UP and the lead us DOWN.

I really have not idea where we are as in a BULL or BEAR market. I am probably the last dude out there thinking we have another wave down coming. I think that for one reason: the Leading Diagonal pattern. The low in October 2022 was either a 1 or an A. If it was an A, then the B wave could go up and make new highs and then a smashing C wave. Else, we are going up in a wave 2 …

How can we figure out where we are going? New highs or another move lower …?

I like to use a PATTERN THAT FAILS or a PATTERN THAT WORKS and here we are .. a VERY NICE GARTLEY SELL PATTERN ON THE BANKS.

IF IT HOLDS AND WORKS AND THE BANKS START DOWN THEN … I suspect a move down will be coming.

IF IT FAILS AND THE BANKS CONTINUE TO GO UP then I think this will add fuel to the upward move.

34-35.66 on the XLF.

One last, note the measured moves …almost all of them (red arrows) are exact. Those that went a little higher were harmonic w/ 1.27 and 1.618 of the measured move.

PAY ATTENTION TO THIS LEVEL ON XLF