Wednesday 28 November 2012

FAZ - closing within a bear flag

With the main indexes seeing a very sharp intra-day reversal from the morning declines, the financials similarly recovered, with the financial bear ETF - FAZ closing the day poorly. The daily chart is presenting a very clear 4 day bear flag, and looks set for at least another one or two days lower.

FAZ, daily


The 3x leveraged short ETF, the 'FAZ' closed 1.3% lower @ 17.39, after earlier hitting 18.25.

This sort of swing is not that extreme, but for anyone who was happily long FAZ this morning, the closing level today has to be seen as a major disappointment.

*if my index outlook is correct, with the sp' maxing out around sp'1425 within the next day or two, FAZ should hold just above the recent October lows. We will soon find out if I'm right.