Looking at a daily chart of the SKF you can see that a pull back can be expected on a technical basis, I expected one this morning actually, but the retail sales data pushed the market and financials down and so the SKF up.
Since the collapse from 300 the 100 day and 200 day moving averages have proven to be tough resistance for this ETF, however it has now punched through those moving averages and clear skies ahead right? Well not necessarily. The first thing you see is that the stochastics at 80 and tiring, then notice how the volume is dropping off. Nothing goes up in a straight line and I am expecting a pullback here to form a higher low. So for example it might fall back to $115 before resuming its upward climb and you can picture on the chart how that would be ( locally at least) a higher low.
This market is so blatantly rigged and not sure that technicals matter anymore, but if they still do, then looking at the weekly chart tells you why the SKF is likely to go a lot higher from here. The stochastics are around 20 turning up and separating.
Now I'm guessing that the earnings will be very poor for the financial sector in particular, so poor that all the plungers men won't be able to push them up again. Can that be true; we will just have wait and see, but for now just hold tight the SKF and don't sweat a pullback, in fact you can add when the ETF turns around again.
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