By Bryan McCormick

The Financial Select Sector SPDR exchange-traded fund (XLF) is reaching a breakout level at the $15.50 area.

Mergers and acquisitions are starting to be a sign of the times. An unexpected decline in wholesale inventories wasn’t enough to put the markets in the red in early trading, thanks to a slew of M&A deals in the biotechnology and financial sectors.

Abbott Laboratories (ABT) is going to buy Facet Biotech Corp. (FACT) for $450 million. Abbott’s bid bested a failed bid from Biogen Idec Inc. (BIIB). The move would add immunology and oncology to Abbott’s repertoire. These deals signal more than just the health of aspects of the biotech sector; it’s a sign of renewed confidence in the economic recovery. It wouldn’t be surprising to see more deals in this and other sectors take place in the coming months. iShares Nasdaq Biotechnology (IBB) is up about 1% this morning.

By Bryan McCormick

The SPDR S&P Retail exchange-traded fund (XRT), which we discussed a week ago when it broke above resistance levels, is already nearly halfway to its potential target at the $42 area.