XLV Elliott Wave: Trading Setup Unfolds as Expected
Hello fellow traders,
As our members know, we have identified a number of interesting trading setups recently, including the XLV ETF setup. Our Elliott Wave analysis identified a clear three-wave correction from the recent peak, with price eventually reaching the Equal Legs area marked as our Blue Box buying zone.
The Blue Box defines an important area where we look for a potential entry, while the Elliott Wave structure helps us assess the setup, manage risk, and identify potential targets.
In the sections below, we will take a closer look at the XLV setup and walk through how the opportunity developed.
XLV Elliott Wave 4 Hour Chart – 9.9.2026
The Health Care Select Sector SPDR Fund (XLV) is showing a clear three-wave pullback from the recent high. Price has now reached our Blue Box buying zone at 167.09–162.48, marking an important area to enter the long side. At this stage, we do not favor selling XLV. Our focus remains on the long side, as the broader trend is still bullish. From the Blue Box area, we expect XLV to have an opportunity to start at least a three-wave bounce. If the bullish structure remains intact, the ETF could extend higher and eventually challenge new highs.
The setup also comes with a clearly defined risk-management plan. If the expected bounce reaches the 50% Fibonacci retracement against the black ((b))-wave high, we can move the stop loss to breakeven while taking partial profits. A break below the 1.618 Fibonacci Extension at 162.40 would invalidate the setup.
This is the type of opportunity we look for every day for our members: a clearly defined entry zone, a specific invalidation level, and a plan for managing the trade once the market starts moving in our favor.
Instead of chasing price or guessing where to enter, our members can follow these setups as they develop in real time.
The official trading strategy for identifying 3, 7, and 11 swings and Equal Legs setups is explained in detail in our educational video. The video is available exclusively to members inside the membership area.
XLV Elliott Wave 4 Hour Chart – 9.29.2026
The ETF found buyers as expected. As a result, long positions taken from this zone are now risk-free, with the stop loss moved to breakeven.
The primary view suggests we may still see a double correction within the blue wave (2). Regardless, we will keep the remaining position open to capture further profits in case the alternative path takes place. The main view remains bullish, and while the proposed double correction is the preferred scenario at this stage, it may or may not develop.
Keep in mind that the market is dynamic, and the outlook may have changed in the meantime. Our member Chat Rooms are open 24 hours a day, Monday through Friday, on trading days, providing ongoing expert guidance on market trends and Elliott Wave analysis. Members can ask questions about market structure and technical setups at any time during trading days.
The best instruments to trade are those with incomplete bullish or bearish swings. These setups are highlighted in our Sequence Report, while the highest-conviction opportunities are presented in the Live Trading Room.
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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

