The financials did not follow through on Friday's buy signal, but fell instead with the broader markets in the wake of more bank failures. As I stated Friday, the XLF needed to move above Friday's high to confirm the signal, which it did not, so you should have not taken the trade. This could still be an opportunity if the XLF holds above the September low, but that is not looking too likely right now.
With regard to the broader markets, strong rallies are likely, but until the intermediate term trend turns, trying to buy bottoms will be dangerous. When potentially bullish conditions are reversed almost immediately as happened yesterday in the wake of the failed bailout plan, it is particularly bearish. Any rally should be regarded with suspicion until a valid follow-through is seen.