SPY Update: Meltdown In Financials

The SPDR S&P 500 ETF Trust SPY may be forming a new downtrend. The support at the important $423 level has been broken.

While cryptocurrencies and Big Tech are grabbing the headlines, many missed something important Thursday: the financial sector stocks made a huge move lower.

The Financial Select Sector SPDR Fund XLF tracks the financial sector. And yesterday it dropped by almost 3%. This was the biggest one-day loss since the market crashed last February.

The financial sector was one of the leaders of the market rally that went from March through May. Now there’s a chance that it leads the market lower.