The $SPY came down to touch the rising 5 day moving average and trendline of the last two weeks and has bounced nicely from that level.  Today’s low (which is now the low for 2012) of 126.43 will be an important level for the market to hold, it has the potential to be the “higher low” from which a new intermediate uptrend could develop from.  It is also encouraging that the $SPY holds above the 200 day moving average and the “neckline of the inverted head and shoulders pattern we have discussed.

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The $QQQ is showing relative strength as it is at new highs (for 2012), but the daily chart is still a mess and there is potential resistance just above near 57.60

Financials behave well as they held the rising 5 day moving average, 13.10 is the near term critical level of support for the $XLF and then the larger level of 12.80