ETFs indexed to the S&P 500 are trading above the 50-day exponential moving average despite weakness in recent sessions. Also, the technical indicator is turning upward which is a potentially bullish sign for U.S. equities.

Closing at 1354.68 last week, the SPX managed to rally back above the 1353 level, where our market technician David Chojnacki sees near term technical support, and the index has managed to close above the 50 day MA for the past five trading sessions, a feat not achieved since late April.

We see upside technical resistance at both the 1375 and 1405 levels in the SPX, should it venture to get there (1374.81 was touched early last week briefly prior to the July 4th market holiday).

Although it did feel that the bulls were finally wrestling away control from the bears, last Friday’s fall back in equities also demonstrated that there are still bids around for U.S. Treasury Bonds, as iShares Barclays 20+ Year Treasury Bond (NYSEArca: TLT) rallied about 1% and is flirting with multi-week highs.

This action, coupled with some late week put buying in broad based index ETFs including SPY, IWM, and EEM for example, displays that there still remains some institutional caution out there in regards to the most recent equity rally.

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