Financial Select Sector SPDR ETF (XLF) -- A Sign of the Times?
by Sam Collins 12/20/07Financial Select Sector SPDR ETF (XLF) -- This index of the financial components in the S&P 500 (SPX) includes an array of diversified financial stocks, from investment management to commercial and investment banking. Since May 31, the index has tumbled by more than 25% and now appears to be trying to establish a bottom with the stochastic arching up.


But the Nov. 26 low at $28.10 must hold or it will add a new leg to an already-steep decline. If that were to occur, it is doubtful that the S&P 500 lows made in August and November at 1,407 could hold, either.
More By This Expert
The charts are bullish for both indices, and it looks like they could reach my immediate target.
Thursday's dramatic acceleration, coupled with a 'key reversal day' on Monday, leads me to the conclusion that the markets will continue to rise.
Our internal indicators are now telling us that stocks are still a good value at this level.
The recent pullback in the First Trust ISE-Revere Natural Gas Index Fund (FCG) could offer a good opportunity to accumulate shares.
Unless the S&P 500 closes below 1,020, investors should be buying into this decline.
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