Financials could be attempting a breakout, two weeks before the sector kicks off earnings season.
The first pattern on today’s chart of the SPDR Select Sector Financial ETF is the price level around $52. XLF stalled at that zone in February after peaking about 1 percent below it in November. February 28’s final price of $52.18 could be especially important because it represented the highest weekly close.
The fund broke above it on Monday and remaining here could represent a potentially more significant breakout.
Second is the narrow price range between mid-May and late June. (Notice the tightening Bollinger Band Width.) Could that period of price compression open the door to price expansion?
Third, the 8-day exponential moving average (EMA) is above the 21-day EMA. MACD is also rising. Those signals may reflect short-term bullishness.
Next, the steadily rising 200-day simple moving average may reflect long-term bullishness.
Finally, the calendar may be a factor because Wells Fargo reports earnings on Monday, July 14. Citi, JPMorgan Chase, Bank of America and others follow later in the week.
Standardized Performances for the ETF mentioned above:
SPDR Select Sector Financial ETF (XLF)
1-year: +27.39%
5-years: +126.32%
10-year: +164.49%
(As of June 30, 2025)
Exchange Traded Funds ("ETFs") are subject to management fees and other expenses. Before making investment decisions, investors should carefully read information found in the prospectus or summary prospectus, if available, including investment objectives, risks, charges, and expenses. Click here to find the prospectus.
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Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
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The first pattern on today’s chart of the SPDR Select Sector Financial ETF is the price level around $52. XLF stalled at that zone in February after peaking about 1 percent below it in November. February 28’s final price of $52.18 could be especially important because it represented the highest weekly close.
The fund broke above it on Monday and remaining here could represent a potentially more significant breakout.
Second is the narrow price range between mid-May and late June. (Notice the tightening Bollinger Band Width.) Could that period of price compression open the door to price expansion?
Third, the 8-day exponential moving average (EMA) is above the 21-day EMA. MACD is also rising. Those signals may reflect short-term bullishness.
Next, the steadily rising 200-day simple moving average may reflect long-term bullishness.
Finally, the calendar may be a factor because Wells Fargo reports earnings on Monday, July 14. Citi, JPMorgan Chase, Bank of America and others follow later in the week.
Standardized Performances for the ETF mentioned above:
SPDR Select Sector Financial ETF (XLF)
1-year: +27.39%
5-years: +126.32%
10-year: +164.49%
(As of June 30, 2025)
Exchange Traded Funds ("ETFs") are subject to management fees and other expenses. Before making investment decisions, investors should carefully read information found in the prospectus or summary prospectus, if available, including investment objectives, risks, charges, and expenses. Click here to find the prospectus.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.