XLF followed up a bizarre August with a rather tame September – December. That is to say, prices have moved pretty much as expected.  Unfortunately, the chart isn’t very clear about the next steps.

continued for members…

Note that XLF just tested its 200-day moving average at the top of the falling red channel within the rising white channel which is, itself, rising within a larger falling white channel.If it breaks out, then the top of the falling white channel  and/or the rising white channel midline is the next overhead resistance to consider.  If it doesn’t break out, then we should see the rising white channel fall and the yellow TL tested again — ideally at the white channel bottom (yellow dot.)  I’d call it a neckline, but the Aug 24 plunge pretty much dashed that pattern.  The large rising white channel might or might not be placed very well.  I hesitate to ascribe too much validity to it until there’s another test of its bottom.