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.