From a technical standpoint, XLF’s ability to hold above a key level could be an encouraging sign.
“The key level on the downside here is $26.60,” said Oppenheim head of technical analysis Ari Wald in a CNBC interview. “These were the lows that had been put in place over the last month. We think a double bottom is forming here. Now the SPDR still has to get through $28.35 resistance.”
Deregulation could also help the financial sector improve their margins. President Donald Trump has shown its eagerness in cutting back the red tape and remove some of the post-financial crisis regulations that has stifled the industry.
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