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XLF Technical Set-Up Suggests it Still Has Unfinished Business on the Upside


The Financial Select Sector SPDR Fund (XLF) (Semiconductor) exhibits a still-constructive set-up, as the price structure has carved out a high-level digestion pattern off of its Feb 21 high at 77.82 that has come in for a (so far) soft landing that has preserved the integrity of its strongly up-sloping 20-DMA (76.59) and its Jan-Feb support line, now at 76.40.

The VanEck Vectors Semiconductor ETF (SMH) has pivoted to the upside off of the 20-DMA and the near-term support line, and is poised for upside continuation that projects into the 79.00 target area.

That said, however, let's notice that MACD remains in corrective mode, which could be a warning that upside acceleration might have to wait for more time and sideways price digestion prior to lift-off.

A sustained break below 76.40/20 support will inflict meaningful damage to the currently constructive set up... Last is 77.28/30.

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