So the entire world believes that if XLF breaks 23 it is going much lower. If so how would you play it ? ATM puts on the break ? Wait for shorts to be shaken ? Wait for counter trend rally ? Bear call spread above ? Just asking....
I read that rate differentials have an effect on the financials. Take a look at the 2yr under 10yr. US treasury curve. 2 year holding pretty steady waiting on fed bias/change but 10 year yield down bigly. Spread less than 1% (100 bp. ). very recently. What the fed says in June may have an effect on XLF , possibly range bound till.