Exchange traded funds indexed to the S&P 500 are nearing the bottom of their recent trading range and a key support level.

SPDR S&P 500 ETF (NYSEArca: SPY) ended with a gain Monday but financial ETFs fell along with Bank of America (NYSE: BAC) and Goldman Sachs (NYSE: GS). [Stock Rally Fades]

“Action on the S&P 500 remains weak. This morning’s sharply higher open was soon met with keen sellers. We remain bearish unless the index can regain a foothold above 1200, which at the moment looks unlikely,” said Tarquin Coe, technical analyst at Investors Intelligence, in a newsletter sent Monday.

He noted the morning’s leaders were last week’s dogs, such as Hewlett-Packard (NYSE: HPQ),while financials and cyclicals were among the weakest stocks.

Worries plaguing stock ETFs include a bank run in Europe, potential dissolution of the euro currency, slowing growth in the emerging markets and a double-dip recession in the U.S. [Stock ETFs Volatile on Laundry List of Concerns]

“A clear support shelf sits across 1100, the bottom of the one hundred point range of the past two weeks,” Coe wrote Monday. “Should that break decisively then be prepared for a lead-balloon drop to 1000, the lows from last summer. Such a move would provide the necessary jaw-dropper of a washout that this market really needs to shake-out the vacillating bulls.”

The iShares S&P 500 (NYSEArca: IVV) also tracks the U.S. blue-chip index.  The ETF was down 9.6% year to date as of Aug. 19, according to Morningstar.

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.