The financial sector made up for the weakness in tech as several names saw bullish action and kept SPY from pulling back more significantly. This is what we have seen often recently where one sector is up while the other is down as money shifts from one to the other in this market rotation.
Apple reports earnings Tuesday and will have a notable effect on the market. We have a very similar setup going into Tuesday morning as we did yesterday. We will be watching the low of today as support and the high of the bounce attempt as resistance for our first clue as to which direction we will head for the day.
SPY is close to testing the daily uptrend as it is close to breaking the last daily higher low of $279.06. If that support breaks we will then look at the weekly chart to see if our weekly higher low will hold support. Our last weekly higher low for SPY is $268.49. If the daily uptrend breaks the bulls will need to establish a higher low somewhere above that level to keep the weekly uptrend in tact.
SPY Daily Chart:
SPY Weekly Chart:
