A head and shoulders top began forming on the weekly chart of the Financial Sector Select SPDR Fund (XLF) early this year, and the sharp decline in Wednesday’s session took the fund price back down to neckline support in the $23.00 area. As the second phase of the pattern has progressed the relative strength index has been tracking lower and below its 21 period average, and the accumulation/distribution line crossed under its signal average. The integrity of pattern support will determine if the price action this year is part of consolidation process that eventually leads to a return to the previous uptrend, or it marks an important top and the fund is preparing to make a measured move back down to its 2016 highs.