The Financial Select Sector Spiders (XLF) are trying to build a base of support above the 50-day moving average with Friday’s low tapping $26.75. A close below this level could lead to another backtest towards $26.50-$26.25 and the 200-day moving average.
Near-term and current resistance is at $27-$27.25. Continued closes above the $27.50 level would be a more bullish signal for a retest towards the $27.75-$28 area.
RSI is in a slight downtrend with support at 45-40 and the latter representing the month low. A move below 40 would be a bearish signal with risk towards 35 and the March low. Resistance is at 50 and prior support from earlier this month. A move above 55 would signal a return of momentum.