In my previous analysis of XLF posted on 11 December 2018 I expected it to find a bottom in the area of That is a high probability bottoming zone (23.17-22.85). I expected a meaningful corrective wave ( iv ) up and the final drop in the wave ( v ) down that would complete the whole corrective structure in the wave ( 4 ) down off the top of wave ( iii ) up that topped in January 2018.
On 26 December 2016, one and a half months later, XLF dropped to 22.06. However, the problem is that we do not have a completed structure of that final move down in the wave C of ( Y ) of ( 4 ). That wave C should be subdivided into five subwaves. And even though it hit my target box and saw a nice bullish reaction off the target box I can not declare it is having bottomed. The ideal scenario will be another drop to a new lower low in the 20 sh area.