XLF faces a short-term decline (approx. 2 weeks) from record highs that will be shallow, leading to a bullish outlook for Q4.

Let's jump over now to the XLF. Okay, so this is the XLF and let's pop this over too. And you can see on the intermediate term for the XLF, it is neutral. Shortterm, uh, it is slightly bearish there for the MCM. Let's see what's going on on the chart. 914 to around 112 rising phase that has been going on for a while. But look at that very subtle turn here in the RS on the weekly time frame, giving you some signs of stalling at least. Here we are so far holding above this old high at 5652. If it can lose that level, we we're going to be looking for a little bit lower. But look at the overall translation. Very very very strong. And and it indicates we are likely going to see new highs still here coming up in the XLF. Uh possibly after a little bit lower. We'll have to see. Shortterm there is a low that is due 911 to around 9:24. uh you know obviously a very strong uptrend that is now transitioning to more of a trading range. You can see that right there. So we're going to be watching for a little bit lower possibly and then another pop and you have to watch that closely. If that fails early and then rolls down, well, that would have us look at that next low, which is due if we have our pointer out here right around the middle part of October, or if it sells off and starts to move quickly back towards the 78.6 fib of this high to that low, well, that would raise the odds that you're seeing an intermediate term trough form here. So, again, always think about both sides of that play. And obviously we will be watching this closely for our level three and four members uh for opportunities.

Let's take a look at XLF, and of course , we know that the financial sector is very important. Based on the same analysis, the decline is likely to continue for another two weeks .