The Previous XLF Count, posted on May 1, did not pan out as presented.
What looked like a pretty clear fourth wave triangle, and was expected to break to the upside, broke to the downside and the whole count was completely thrown off.
Have been thinking what is XLF tracing for a while now. This possibility looks like the top choice for now.
Unlike the SPX & DOW, XLF may be tracing a single zigzag for P2. Wave C here could bottom with the wave X on the indices, completing a lengthy Intermediate (B), which is a 3-3-5 flat. Then Intermediate (C) would rise along with the second zigzag of the indices to finish around the same time, Oct 2012.
May look like a long shot, but for now it is the only possible count I can see.