... is that while the broad averages (DJIA, SPX, QQQQ) will likely man new lows tomorrow, the sector that has caused this mess and is the only thing being talked about in the news (XLF) will almost certainly diverge from the broad averages and NOT breach its lows tomorrow. I just find it interesting that the catalyst of all this mess will actually be showing some relative strength by not making new lows tomorrow, while the broad averages likely will.
I look at it as just another indicator that we are very very close to a bottom. However, there must be some sort of catalyst to make this bottom sustainable.
No.... the low was put into the XLF a while ago, I think it was when the new short-selling rules were implemented.
BAC could easily selloff tomorrow on MER buyout, maybe the shareholders will look at this as a total negative for BAC and sell its shares back down into the 20's. Watch XLF, support around $19.50-$19.75 area, if it drops through there new lows could be on the way.