Key Levels to Watch:
SPY: Resistance on Monday was at 135.89, this morning SPY is trading above this level. Past that level resistance is at136.27 which marked the highs the last two weeks there some resistance here. If SPY can stay above 135.89 there is a good chance of an up day today. On the support side bulls will hav to defend the potential opening gap by holding 135.43 and 135.89. The more important support level is at 134.85 to 134.44. The 134.85 is a support level while 134.44 represents a support level and the bottom of the triangle.
Dollar: The dollar has weakened over the last couple of days unable to break above 83.67 level which was a long-term resistance. It has dropped back to its pre-breakout level of 83.09. Overnight it broke this level and has since bounced back. DX going below this level would be bullish for the market. Watch 83.30 for a potential breakout on the dollar.
Oil: Oil has broken out of its resistance at 87.82 and looks to be testing its swing high from the last few weeks at 88.98. This morning it is trading at 88.64, a move above this level is send /CL to 91. Oil has two short-term support levels at 87.82 and 86.21.
TNX: Based on our post yesterday if TNX breaks below 14.40 it goes much lower as there is no support below this level.
XLF and Others: XLF did not breakout yesterday nor did WFC, JPM or BAC but 14.80 would be a breakout of XLF’s triangle. WFC still needs to close above 34.28 or breakout above 34.59, BAC and JPM are still below their breakout levels at 37 and 8.22.