XLF

Jan 5, 2011

 Heading up to finish (C) higher than (A) as expected.

Dec 10, 2010

This is my count for XLF.

Like the SPX, XLF has clear five waves in (A), indicating a 5-3-5 zigzag correction.

XLF had a massive drop from the Jun 2007 highs. It has not even retraced 38.2% yet. My guess is that a major rally is yet to come, completing the retracement between 38.2% and 50%.

That also corelates well with SPX Projection of 1300.

Below, a higher degree count followed by a lower degree count.