Bank of America & XLF

It’s no secret, Warren Buffet has been selling BAC, shares for some time; more recently, here.

The hard part is, how does one map that to price action?

Or does his selling have any material effect.

From a Wyckoff standpoint, we put that information in the background.

It’s there, we’re aware of it, but the focus is on price action itself.

So, let’s take a look.

BAC is a heavy weighting the in financial sector, with index tracking fund XLF, as a good vehicle for analysis.

That ETF just printed an all-time high this past Friday.

Financials XLF, Daily

Friday’s Fed announcement could be a significant infection.

Of course, the media is all aboard with a September cut, providing endless opinions on how to trade something that has not even happened.

What we’re looking for on this site, is some evidence of a reversal. We’re looking to see if price action stalls in not only the XLF, but the other major sectors as well.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279