Pullback in Financials Appears Complete
By Mike Paulenoff, www.MPTrader.com
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.