New Trading Systems - Think Tank

[rimshot]

SPX with XLF 60-min closes since 2010 (XLF is shown as the dashed blue overlay behind the SPX price action)

XLF - the 2010 to 2012 price structure observations as it relates to current risk management:

Consider for XLF:

1. the upper boundary level defining the summer 2010 consolidation, which was later negated by the following
advancing sequence which started in early November 2010
... and then later began to top with XLF leading the SPX price action in the March to May 2011 period

and

2. consider the acceleration pivot for the 2011 breakdown location
(downside violation of the June and July horizontal support failure)

*** without XLF price action now actually negating the breakdown structure of the long-term XLF chart, this current
advancing sequence by XLF is suspect for those of us who place risk management as a high priority ***

to Glen regarding XLF: the only confirmation that this is NOT a "BS Rampo" is when XLF advances back above the obvious price structure which defines the advancing initiation price levels for late 2010 which is the same area that defines the declining initiation price levels for the August, 2011 decline by XLF