Now for a look at Financial Select SPDR ( XLF), which technically indicates that we should expect renewed price recovery. Components Bank of America (BAC), JP Morgan (JPM) and Wells Fargo (WFC) all exhibit similar chart structures that argue for higher prices in the financial sector.

My near and intermediate-term work indicates that the pullback in the XLF from the January 31 recovery high at 29.93 into Monday's low at 26.28 is complete and that all of the action since then represents a minor base-like pattern that will thrust prices to the upside (28.50/90 next) in continuation of the larger recovery period off of the January 22 low at 24.11.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.