Financial sector's bullish run over?

By Julian Yosovitch

October 15, 2014 • Reprints

The financial´s sector ETF (XLF) is currently at the lower part of medium-term bullish channel so all attention is focused on the support located at $22.65.

With a close below this level, the index will remain vulnerable to extend losses leading the market toward lower areas around $22.50 and $22.10.

The selloff last week on Oct. 9 annulled the bullish signals left the previous day, so all the attention is now focused on the mentioned supports, which if broken will lead to more bearish moves.

To avoid such corrective bullish scenario, the bulls should rapidly act leading the XLF back to $23.15 and $23.45 later.