Financials yesterday did very well and rallied almost 6% by end of the day. While XLF is near a support level and has bounced off of its Monday lows, in order for a meaningful move higher, i feel that it needs to consolidate and build momentum. See example in yellow box back in Aug 2019, where it consolidated to pushed higher after a ~10% fall.
I'd like to see the VI get above its 24 moving avg, and RSI diverge higher as price moves sideways. In times of down turns as severe as this, while we may at times get snap back both up and down with little reason or cause, in order for one to be fully committed to either side, we need to see evidence of consolidation, and not just guess that one day it will chop higher and next day it will chop lower. Cheers.
I'd like to see the VI get above its 24 moving avg, and RSI diverge higher as price moves sideways. In times of down turns as severe as this, while we may at times get snap back both up and down with little reason or cause, in order for one to be fully committed to either side, we need to see evidence of consolidation, and not just guess that one day it will chop higher and next day it will chop lower. Cheers.