The largest exchange traded fund tracking the U.S. financial sector was getting a boost Tuesday from key holding Bank of America (NYSE: BAC) after surviving a recent test of the 50-day moving average.
The $6.9 billion Financial Select Sector SPDR (NYSEArca: XLF) is up 19% year to date, topping the 12% gain for the S&P 500. After lagging the market for years on credit woes, technical analysts are looking for the financial sector to provide some leadership and help power the next phase of the rally.
Bank of America rose nearly 3% on Tuesday and was the market’s most actively traded stock by share volume. The banking giant accounts for 4.7% of the financial sector ETF.
“The financial sector, as a whole, appears to be on the rise. Since December, a combination of easing of concerns about Europe, strong earnings reports, and successful stress tests have helped the sector rebound from its previously moribund state,” Equities.com reported Tuesday. “Since November 24 of last year, the Financial Select Sector SPDR … has gained over 30%, showing the sector as a whole has been on the rise.”
XLF was up 1.8% in afternoon trading Tuesday.
Financial Select Sector SPDR
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