The S&P Select Consumer Staples SPDR ETF (XLP) has been one of the strongest ETFs in the market over the past two months. Last Thursday, on a burst of volume, XLP unsuccessfully attempted to break out of its three month trading range. Nonetheless, this ETF is now poised to see a new 52-week high and could provide a buying opportunity either on a pullback or on a volume fueled move above the three day high ($34.65). Because obvious breakouts above recent swing highs often fail, ideally we would like to see XLP pull back and form a reversal candle near its 20-day and 50-day moving averages. The high of the reversal candle would then serve as the buy pivot for a possible long entry. We will be monitoring XLP closely as a potential long candidate.