SPDR Select Sector Fund ETF (XLF) – Elliott Wave Technical Analysis

Daily Chart Analysis

Function: Major Trend

Mode: Motive

Structure: Impulse Wave

Position: Wave 5 Navy

Direction: Uptrend

Details:

The 4th wave bottomed at $47.22 in a flat pattern.

The current rally is still in its early stages and is expected to fully retrace Wave 4 in a five-wave upward structure.

Minimum target: $54.00, aligning with the upper boundary of Elliott’s final channel.

Invalidation Level: $47.22

4-Hour Chart Analysis

Function: Major Trend

Mode: Motive

Structure: Impulse

Position: Wave 5 Navy

Direction: Uptrend

Details:

Wave 4 has ended within the expected KTL time range, confirming the wave count.

The ongoing rally indicates the early stages of Wave 5, suggesting a strong buying opportunity.

A throwback before continuation is expected, providing a better entry point.

The $52.635 high should be surpassed by the ongoing climb.

Key level: $48.18

Invalidation Level: $47.23

Conclusion

The 4th wave decline and correction in XLF is now complete.

The ongoing rally is a fifth-wave movement, signaling a strong upward trend.

After a potential throwback from a fifth-wave subwave, the market should rally significantly.

This setup presents a good opportunity for ETF traders to go long.

Adhering to Elliott Wave principles and monitoring invalidation levels is crucial to avoid unnecessary losses.

Technical Analyst: Siinom

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