Now for a look at Financial Select SPDR (AMEX: XLF), which technically indicates that we should expect renewed price recovery. Components Bank of America (NYSE: BAC), JP Morgan (NYSE: JPM) and Wells Fargo (NYSE: WFC) all exhibit similar chart structures that argue for higher prices in the financial sector.

My near and intermediate-term work indicate that the pullback in the XLF from the 1/31 recovery high at 29.93 into Monday's low at 26.28 is complete and that all of the action since then represents a minor base-like pattern that will thrust prices to the upside (28.50/90 next) in continuation of the larger recovery period off of the 1/22 low at 24.11.

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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