XLF “has rallied higher in February and March, yet the trend remains down since the $25.62 peak in July. In November, the price made a lower swing high at $24.97. While the price has rallied to a March high of $22.84, that peak is well below the November high. At this point, the ETF is still experiencing lower highs. Downtrends are created by lower highs and lower lows. Therefore, the expectation is that the rally will stall between $22.75 and $23.75, followed by a fall toward the February low of $19.53,” according to Investopedia.
Investors hoped that higher rates would allow banks to capitalize on wider net interest margin – the difference between deposit rates and lending rates, but the global economic uncertainty has weighed on prospects for a quick Fed rate hike schedule.
Financial Select Sector SPDR
