There are three sector exchange-traded funds that can help the S&P, currently at 2,098, do that Friday.
The first, Health Care Select Sector SPDR (XLV) exchange-traded fund, is up 9.5% for the year to date, outperforming the gain of 2.4% for the S&P 500. Also positioned to help is the Financial Select Sector SPDR Fund (XLF). While up just 1.7% year to date, this ETF will likely end the week with a positive weekly chart.
All have positive weekly charts, unlike two other sector ETFs outperforming the S&P 500 for the year to date but poised for decline: the Materials Select Sector SPDR Fund (XLB) with a gain of 4% year to date, and the Consumer Discretionary Select Sector SPDR Fund (XLY) with a gain of 6.6% year to date.
Let's look at the weekly charts for the three positive sector ETFs and provide trading guidelines.
Here's the weekly chart for the Financial ETF.
Courtesy of MetaStock Xenith
The Financial ETF recently traded at $25, up 1.3% year to date, and set a multiyear intraday high of $25.20. The ETF is above its 50-day and 200-day simple moving averages of $24.51 and $24.04, respectively.