Let’s notice that for the past five sessions, while the SPY climbed 6.3%, the Financial Select SPDR ETF (XLF) has traded in a well-defined sideways range at the high side of its March upmove. The pattern resembles a Bull Flag formation that should resolve itself to the upside in a thrust to new highs above 9.70 towards the 10.50/80 target zone. At this juncture, only a break below 8.70 will compromise my currently constructive scenario.



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.