There are no new setups on today's ETF watchlist section of our nightly trading newsletter, but we are monitoring the action in Oil and Gas ETF ($XOP) for an entry point.

As shown below, $XOP has pulled back to a significant support level on the weekly chart, with the 10-week MA, uptrend line, and prior highs of the last base all around $79.



Last week's selling was on heavier than average volume, but if $XOP continues to hold at or above last week's low, then we can assume that the buyers overwhelmed the sellers.

An inside week at or around the 10-week MA here would be ideal.

Although the financial sector is lagging, current basing action in banking ETF ($KBE) and insurance ETF ($KIE) are bullish.

$KIE has formed a base on base pattern, which occurs when a current base sits on top of a prior valid base without much extension in price.



The current base is pretty tight and sitting on top of a rising 10-week MA. A move above last week's high or another test of the 10-week MA are potential entry points.

On the stock side we have one new buy buy setup in Springleaf ($LEAF), which is forming a cup with handle pattern on the weekly chart.

$LEAF is currently forming the handle portion of the pattern above the rising 10-week MA. Note the dry up in volume two weeks ago, which is a bullish sign. A break of last week's high is the entry point with a tight stop placed just below the 10-week MA and last week's low:

 

Deron Wagner is the Founder and Head Trader of both Morpheus Capital LP, a U.S. hedge fund, and MorpheusTrading.com, a trader education firm.