I am on the sidelines on Ford (F), preferring to be long the pattern that has been carved out by General Motors (GM) during the past three weeks. For Ford to get any upside traction, it must climb above its May declining rally tops line, now at 15.22.

After holding support around 31.00-30.85 for the past week, GM has turned up from yesterday's most recent swoon to test key near-term resistance at 31.55/60, which if hurdled should trigger upside follow-through towards 32.50/60 on the way to confront its Mar-May resistance plateau at 33.00-33.50.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.