As the byproduct of mystical companies with make-believe accounting, the XLF is rarely worth charting. But, it’s been a few months, and we’ve had some interesting things happen. When we last posted on Jun 30 [see: Update on XLF], with XLF at 24.38, I forecast three key price levels: 23.88, 25.82 and 22.01. Noting that XLF had just broken down (again) through a key trend line, I wrote:
Will it bounce right back as though nothing happened, or will this plunge leave a mark?
As it turned out, XLF came within 0.24 of the 23.88 target, bounced right back through the previously-mentioned trend line to within .20 of the 25.82 target, and, finally, opened within .18 of the 22.01 target (on the day that it dropped over 21% in the opening hour — further evidence that XLF is a silly thing to chart.)
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