The fifth wave is currently active, with a minimum target of $54.07.
We are in wave (iii) of [v], the most powerful phase of the impulse.
This rally is expected to break above the wave [iii] high.
Invalidation Level: $48.58 – breaching this level challenges the wave structure.

SPDR Select Sector Fund ETF – XLF (4H) Elliott Wave Technical Analysis – 4-Hour Chart

Function: Major Trend.

Mode: Motive.

Structure: Impulse.

Position: Wave (iii) orange.

Direction: Uptrend.

Four-hour chart insights

Wave (ii) ended at $48.58, reducing the probability of a complex correction – a bullish sign.
The current move marks the early stages of wave (iii), a prime setup for buyers.
Anytime now is a potential buying opportunity.
Key confirmation level: $50.91 – ideal for conservative entries.
Critical support: $49.50.
Invalidation Level: $48.58 – must hold to maintain bullish outlook.

Conclusion

The ongoing XLF rally aligns with a fifth wave impulse.
The setup offers a strong long opportunity for ETF-focused traders.
The rally is projected to exceed the previous wave [iii] high, aiming for a minimum of $54.07.
Maintaining strict adherence to Elliott Wave principles and monitoring invalidation levels is essential to reduce risk.

Technical Analyst: Siinom.

SPDR Select Sector Fund ETF – XLF (1D) Elliott Wave technical analysis [Video]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

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