XLF critical level to defend

The Financial Select Sector SPDR Fund XLF is at a critical pivot point, testing the long-term support of its aggressive uptrend. XLF is highly sensitive to interest rates and economic outlook, making the defense of this current technical level paramount.

The price broke the Ascending Orange Trend Line showing weakness in the sector.Just below the Orange Trend Line is the Ascending Yellow Trend Line. The space between the Orange and Yellow lines acts as a strong, final defense zone for the current bullish structure.

The current sell-off brings the price back to test the viability of the aggressive bullish move. A confirmed breakdown below the yellow Trend Line on the weekly close would signal a larger structural reversal is in play.