The SPDR S&P 500 (NYSE:SPY) was slipping almost 0.5% on Tuesday ahead of Apple's highly-anticipated iPhone event, where one analyst expects to see the tech giant showcase a premium lineup of products.

Wednesday's key inflation report is weighing on investors who will be watching to see if consumer price index data shows inflation continued to creep higher in August after rising slightly in July. The economic data comes ahead of the Federal Reserve's next meeting, which takes place on Sept. 19 and Sept. 20, when the central bank will decide whether to hike interest rates or apply a pause.

Some traders may sit on the sidelines until the report prints, while others may choose to place their bets on how the market will react when the data is released.

More experienced traders who wish to play the SPY either bullishly or bearishly may choose to do so through one of two Direxion ETFs. Bullish traders can enter a short-term position in Direxion Daily S&P 500 Bull 3X Shares (NYSE:SPXL) and bearish traders can trade the inverse ETF, Direxion Daily S&P 500 Bear 3X Shares (NYSE:SPXS).

The ETFs: SPXL and SPXS are triple leveraged funds that track the movement of the SPY, seeking a return of 300% or –300% on the return of the benchmark index over a single day.

It should be noted that leveraged ETFs are meant to be used as a trading vehicle as opposed to long-term investments.

The SPXS Chart: SPXS was trading slightly higher on Tuesday, inversely correlating to the movement of the SPY. SPXS's small rise was taking place on lower-than-average volume, which indicates a period of consolidation and lack of interest in the general market from investors ahead of CPI data.

• From a technical analysis perspective, the mostly sideways trading on lower-than-average volume, paired with the ETF's 18% jump higher between Sept. 1 and Monday, has settled SPXS into a bull flag pattern on the daily chart. The measured move of the formation suggests the fund could rise toward about $11.60 if SPXS breaks up from the bull flag on higher-than-average volume.
• SPXS is also trading in an uptrend, making a series of higher highs and higher lows. The most recent higher high was formed on Monday at $10.63 and the most recent lower low was printed at the $9.81 mark on that same day.
• If SPXS breaks up from the bull flag pattern, the ETF is likely to form another higher high to continue in its trend. On Tuesday, the ETF was also trading in an inside bar pattern, which leans bullish for continuation on Wednesday.
• SPXS has resistance above at $11.11 and at $12.62 and support below at $9.54 and at $8.17.

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