Let's notice that for the past 5 sessions (while the SPY climbed 6.3%), the Financial Select SPDR ETF (NYSE: 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.

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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