The SPDR Financial Sector ETF (XLF, +1.1%) is on track to close above its 200-day simple moving average for the first time in seven months.
Financial stocks, which were stranded during the summer rally, have gained some momentum in the last two weeks, heading into bank earnings next week.
A rise in rates has helped, with the 10-year Treasury yield, now at 0.77%, hitting the highest levels since late August.
XLF is up more than 6% from its September lows and is crossing the its 200-day SMA of $25.
It fell below the 200-day on Feb. 27.
J.P. Morgan cut Citi to Neutral today due to its regulatory problems with its risk management.