Considering the action in the financial sector and select bank stocks, it’s hard to believe it’s been 6 months since I last posted on the banks. So what’s happened to the SPDR Financial Sector ETF (XLF) since that post?
Well, the XLF corrected much like I thought. It’s pullback took it just below 23 in January before giving way to another rally. Fast forward to today, and it’s June already and the banks have had a nice run… all the way back to the December highs.
So what’s next? Obviously, the banks are very important here, especially with the sovereign debt crisis simmering. I suspect they are going to play a central roll going forward. However, we still have one more major target outstanding… Let’s take a look at what the patterns are saying about the popular Financial Sector ETF (XLF).
The banks lead us UP and they lead us DOWN. But it looks like they may have a little more gas in the tank. Either way, I think investors should watch these important levels closely. Click charts to enlarge.
SPDR Financial Sector ETF (XLF)
SPDR Financial Sector ETF (XLF) – Monthly Chart
Thanks for reading.
No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.