XLF focuses on some of the largest financial names taken from the S&P 500. Investors can also focus on bank stocks as expanding economy could push more to take up new loans.
“After a failed breakout beyond this level – it’s roughly $23.40 per share – price formed a nasty Bearish Engulfing Candle on the Daily Chart and then broke under the lower rising trendline to trigger (and confirm) a sell signal in the ETF,” notes Afraid to Trade. “The implication from the breakdown is that price can once again move to test the spike-reversal lows near $22.00 per share in the ETF and comparable price levels in the individual financial companies that comprise the sector ETF.”
Financial Services Select Sector SPDR
