Keeping Them Honest Before Some Big Games

In front of Apple earnings tonight and the FOMC tomorrow afternoon, some of the notably weak parts of the market are charging higher this morning. 

Specifically, the energy/materials complex, financials, and emerging markets are clearly leading, along with the mega caps in the Dow Jones Industrial Average, while small caps, biotechnology issues, and the Nasdaq in general lags. Market leaders like NFLX TSLA remain soundly in the red, giving the look of having lost their crown. 

Meanwhile, you get the sense that shorts in those beaten-down sectors are being kept honest into the Fed. I see potential inverse head and shoulders bottoms on many energy/emerging market-related charts on 30-minute timeframes, provided that bulls have the ammunition to keep the rally going. 

First things first, though, and as you can see with the financial sector ETF, below, clearing $21.40 above would mark a more meaningful rally this simply moving up to the highlighted resistance trendline dating back to last Tuesday.