Short Term Trading Member Forum

[techcharter]

Financial Sector falling off cliff

The following is a chart of LEH, but the chart is very similar for JPM, GS, and C. Wave 2 looks done, and a motive wave to the downside indicates Wave 3 is under way. There is still a chance for wave c if wave 2 needed more time to consolidate. Ironically FRE is making new 52 week highs this week, but FNM is finishing wave 2 ZigZag up of its new bear market.

During Wave 1 the stochastics stayed in the oversold are for about 6 weeks. The stochastics are showing very similar conditions now.

MACD indicates momentum is to the downside.

The price is riding the lower bollinger band lower as the bands expand to accomodate more volatility.

http://stockcharts.com/def/servlet/SC.web?c=LEH,uu[w,a]dacayyay[dc][pd20,2!f][vc60][iLp14,3,3!La12,2...

Wow, this is going to get ugly fast.