Interest rates are climbing daily and while this may mean that banks have a better NIM or net interest margin -- it may also mean that loan losses may go higher than anticipated, for example. Various market observers on Twitter are waiting for a shoe to drop or a bank to blow up.
Let's check out the charts and indicators of the Financial Select Sector SPDR Fund (XLF) for clues.
In the daily bar chart of XLF, below, we can see that the shares are weak and are poised to test or break the June/July lows. Prices are trading below the cresting 50-day moving average line and below the declining 200-day line.
The On-Balance-Volume (OBV) line has been on a "glide path" lower since February as traders of XLF have been more aggressive sellers than buyers. The Moving Average Convergence Divergence (MACD) oscillator moved below the zero line for an outright sell signal.