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Financials are critical

|Includes: BAC, C, DDM, DXD, GS, JPM, SDS, SSO, USO, Financial Select Sector SPDR ETF (XLF), XLP

There are a lot of mixed signals going on right now in the market.. Volume is picking up to the down side and then we have a big reversal day with big volume.. The daily charts are not looking that great; especially in relation to the most commonly used moving averages. On the other hand the weekly charts do not look that bad. The S&P is stuck between resistance of 1080 roughly and support at 1040 roughly. Right now I am having a hard time deciding what to do for the short term. Long term I am bullish because of some moving average crossovers I use that are pretty reliable. So what to do. I am going to watch XLF here because it is right on support. if it breaks down I will become short term bearish. If it bounces and the S&P gets above the 1080 level I will become more bullish. I am in the wait and see mode for now.