XLF psar bull signal

The exchange-traded fund that tracks the financial sector, XLF, shows a similar psar signal pattern to SPY -- a two-day sojourn in bearland before whipping back into bull mode.

The bull signal is with the trend that has held in force since Feb. 5. However, the 5-day moving average has turned flat, the macd has been falling since March 12, with a one-day respite, and the sto, in overbought territory, is declining toward neutrality.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
XLF $15.90

The adx, at 28, is just below the point where whipsaws are deemed unlikely.

You are here:

• Reversal
• $24.50, +54.1%
• $22.61, +42.2%
• $16.53, +4.0%
• Now $15.90
• $15.52, -2.4%
• $15.37, -3.3%
• $14.34, -9.8%

It must be said that when an issue has had as gappish a fall as has XLF, there are not a lot of reversal levels to the upside. How meaningful is that? I don't really know. What I do know is that I don't trust financials.

Two other etfs based on banking indexes, KBE and BKX, are also showing psar bull signals with adx readings of 32 each.

Abbreviations:
psar - Parabolic Stop and Reverse
adx - Average Directional Index
pps - Person's Proprietary Signal
ma20 - 20-day moving average
macd - Moving Average Convergence-Divergence
mfi - Money Flow Index
sto - Fast Stochastic


This signal will be followed in the daily Watchlist, which is posted beginning around 2:45 p.m. Eastern. Look for it at www.timbovee.com.

About the glance: The colors indicate the state of each signal.

• trend: green for up, red for down, yellow for sideways
• adx: green for above 30-up, red for 20-down, yellow for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.