— Bespoke (@bespokeinvest) October 11, 2021
Today’s Chart of the Day was shared by Bespoke (@bespokeinvest). It’s a daily candlestick chart of the Finacial sector ETF, $XLF, over the past year. The top-weighted stocks in this ETF include Berkshire Hathaway ($BRK.B), JP Morgan ($JPM), Bank of America ($BAC), Wells Fargo ($WFC), and Citigroup ($C). The Financial sector is up more than 30% year-to-date, making it the second-best performing sector this year behind Energy. Bespoke points out that $XLF broke out of a four-month range to an all-time high last week. It’s possible that this turns into a failed breakout, but there’s a clear line in the sand around $38. As long as it’s above $38, the risk is to the upside. Some of the largest banks in this sector report earnings this week, so we’ll likely know by Friday whether or not the recent breakout holds.