Pennant in SKF

A pennant pattern is shaping up in the 2x-short Financial ETF, SKF.  Of the all areas that could be hit by problems with Europe, none is more glaring than Financials.  After a very rough first week of August, they have regrouped and traded sideways, in increasingly tighter range.  Below is a chart of SKF.  A breakout on either side of the the angle pennant trendlines would be telling, imho.

Since it’s an inverse, a break to the upside would be very bearish for the market.  A break to the downside would likely indicate greater safety in financials and some bullishness.

 

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