Let's notice that so far today the Internet HLDRs ETF (HHH) opened lower but has climbed into positive territory, at a new recovery rally high, with the possibility of closing the session with a key upside reversal spike. eBay (EBAY), which is about 30% of the HHH, looks very impressive for upside continuation towards a confrontation with multi-month resistance at 35.30/40, while Yahoo (YHOO), also about 30% of the HHH, appears to be sending its bear phase. Should that be the case, the EBAY, AMZN, TWX and YHOO, all the major components of the HHH, will be in a relatively positive technical position to drive the ETF towards 64-65.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.