SPY has a technical bounce setup from support, but macro factors weaken the likelihood of a sustained bounce.

First off with the S&P 500 on the SPY daily ETF that we see here, price action came down about 0.55% and really, as you see here with the high pivot, never had an opportunity to go green today. We didn't gap up, instead we gap down and then sold off for the majority of the day.

All right, let's jump into the S&P 500 first with the SPY on the daily time frame. You can see here guys, what have I been saying was going to happen and what should happen because we talk about this in this show so often. We talk about breakouts and retraces to that trend line from which it broke out from. We clearly see we have a high pivot back here on June 2nd. Today was the day we had price come back in and tag that exact same price point and get support and bounce up off of this range. Now, if you take away everything that's going on in the background, this should be a bounce setup. We have three sharp days moving lower right into an area of support. We should be bouncing up tomorrow and testing the gap fill from trading action yesterday. But with the macro backdrop and with price action already coming so close to this level of support in essence weakening this area, that's reducing probabilities of a potential bounce. But, I would not be surprised to see us up and close positive tomorrow just because of the technicals on the chart. We very well likely will need help in the 10-year yield and US oil department for that bounce to materialize.