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.