Best Financial Markets Analysis Article One very disconcerting sign today amidst all the euphoria is the lack of performance in the financials-- after the FASB caved into pressures to modify mark-to-market, and with the price structure of the Financial Select Sector SPDR (NYSE: XLF) pushing up against an important resistance/breakout plateau (9.60/80). Right now, the XLF appears to have failed miserably to "lead" the advance in the larger S&P to the upside.

But what is it doing on the downside? For now, purely from a technical perspective, the XLF is traversing from the top to the bottom of its Mar.-Apr. sideways congestion area, with the initial near term support level at 9.10/00. If 9.00 is breached, let's expect a press to 8.60 thereafter. An upside breakout above 9.70 is needed to trigger a powerful buy signal that points to 11.00. MJP 4/02/09 1:20 PM ET (9.28)

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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