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April 08, 2023
A quick look at Thursday: after closing at $31.87 Wednesday, XLF maintained a strong bullish bias that helped the fund close higher at $32 Thursday. However, market bears ensured the Financial Select Sector SPDR Fund topped out at $32.05 and that by the end of the session, the market had marked out a distinct $31.77 to $32.05 range.
Financial Select Sector SPDR Fund upside coincides with further encouraging market factors as United States Unemployment Rate beat the 3.6 projections, with 3.5.
On the flip side, United States Non Farm Payrolls published yesterday at 12:30 UTC came out at 236,000, falling short of the 239,000 projections and continuing its decline from the previous 326,000 figure.
Meanwhile, United States CFTC Crude Oil speculative net positions released yesterday at 20:30 UTC with a figure of 226,100, while the previous figure was 181,100.
Chart analysis indicates Financial Select Sector SPDR Fund could be slowing down soon; it is getting close to the resistance line and is now at $32.1, only 11 cents away. Crossing the resistance line could, however, suggest that further gains are ahead. With regards to technical trend indicators, chart analysis show that Financial Select Sector SPDR Fund made an initial breakout above its 21 day Simple Moving Average at $31.94, a potential indicator of a newly emerging bullish phase. According to asset volatility analysis, Bollinger Band® analysis indicates that current price action is approaching the upper band at $32.5, thereby suggesting that Financial Select Sector SPDR Fund is becoming overvalued.
Notwithstanding Financial Select Sector SPDR Fund's appreciation in recent days, the technical outlook suggests its bullish run is now fading.
Other markets are also showing gains as Alphabet is trading around $108.9 after ending Thursday's session at $104.95 (up 3.76% today). Alibaba is trading around $102.74 after ending Thursday's session at $98.55 (up 4.25% today). Microsoft is trading around $291.6 after ending Thursday's session at $284.34 (up 2.55% today).
All in all, the fund has been on a negative trend for around a month. Financial Select Sector SPDR Fund has shed 9.61% over the past three months.
