XLF broke its 21-day EMA and 50-day average, now below the 50-day but oversold and holding the 200-day. If the 200-day holds, not all lost; it may stabilize, reclaim the 50-day and possibly see a strong fourth quarter. If it fails the 200-day, that signals changing market conditions.

Okay, let's start with the XLF chart, shall we ? The financial sector. what catches my eye as we look at the financial sector chart is, again, the XLF fund. Um, the financial sector stocks in the market capitalization-weighted S&P 500 index show how we've fallen back through some key moving average support levels, do n't they?

I believe the really important move in the (XLF) chart happened roughly from August to September. This is where (XLF) broke the 21-day exponential moving average level. This is often my first warning sign that the trend is beginning to reverse.

Then we broke the 50-day moving average level, which is a more important level to watch as a general measure of trend. Then the 50-day moving average followed the 21-day exponential moving average and began to trend downwards.

But right now , we are still below the 50-day moving average level, but what happened at the end of September and the beginning of this month, October, is that ( XLF) has become oversold, right?

This means that the trend was very negative or certainly the momentum was very negative, but we maintained the 200-day moving average level .

So, my main conclusion from this video is, guys, we need to keep an eye on the 200- day level. If (XLF) can maintain the 200-day moving average level , it is not all lost yet. Perhaps we will find some kind of stability as we did in November 2025.

Perhaps that will set us up to return above the 50-day level and start to make some real improvements. Perhaps we will head towards a strong fourth quarter like the one we saw during the last year as well.

However, if the XLF index, and certainly the major stocks we will show you such as JPMorgan and Citigroup, fail to maintain the 200-day level, it could tell us a lot about changing market conditions.

Berkshire Hathaway is the largest-weighted stock in the XLF fund It is listed with a weight in the XLF index as the biggest player in XLF