The market correction started on April 16th was led by financials, which can be seen in the chart of Financial Select Sector ETF (XLF). Focusing on XLF, there are two possible correction targets: $15.73 representing 38.2% Fib retracement or $15.29 representing 50% Fib retracement.
4/30 Update
On 4/29, XLF touched $16.64 then bounced back, which confirms that XLF's current falling wedge formation. The tip point of this formation is exactly 50% fib retracement in early June. Falling wedge formation is usually bullish, in this case, it's preceded by an uptrend, it is a continuation pattern, which means, at some point, XLF will break to the upside. But the real question is when will that happen. One possibility is it will happen near 38.5% fib retracement $15.73 in early May, the other (which is shown in chart below as green line) will happen a little above 50% fib retracement $15.3 around June. I feel the second scenario is less likely, but we should wait and see.
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