This morning the Financial Select SPDR (AMEX: XLF) broke out of a 6-week bullish coil pattern that represents the digestion period after the initial upmove from the 3/17 low at 22.1 to the 3/24 high at 27.37 (+23%). With today's surge out of the coil, the XLF has started a new upleg that should propel the financial index towards a test of resistance at 27.80-28.00 next, on the way to an optimal target zone of 29.50. Only a break below 26.40 will wreck the developing upside follow-through from the March low.

By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction

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Comments

Ash
01 May 08, 14:13

ETFs Tax implications..

While choosing these etf's to trade ???

Are there any Tax guidelines to follow...

Everywhere I only see - ETF's can be traded just like stocks.

But recently I have hearing - huge taxes being implied on

certain commodity etfs...

Any clue?

Thanks..a

Jonathan Davis
03 May 08, 05:53

Financials XLF

Financials topped out yesterday (2nd) as did all the big markets. Sell stocks and buy ¥.

Financials had a burst and fell back to end lower. Classic bearish. No doubt you also saw falling volumes as it got to the high.

Bullish? Behave.

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