U.S. Stocks, ETFs Rally And Now Face Europe And Fiscal Cliff
Wall Street Sector Selector | Nov 26, 2012 12:27AM ET
Global markets and ETFs rallied in the short week on light volume and now look towards a full week with the clock ticking towards December 31st and the fiscal cliff, now just 36 days away. Furthermore, the House and Senate have only twelve days in session before they close up for the year on December 14th.
On My ETF Radar
In the point and figure chart above, we can see how the S&P 500 (SPY) is still in a bearish configuration in spite of last week’s rally which returned the short term picture to “Xs” which indicates that demand is in control for the short term. Longer term, the S&P 500 (NYSEARCA:SPY) is still on a “sell” signal and below its red bearish resistance line which indicates bear market conditions.
Significant resistance lies just ahead at the 1420-1440 level.
Last week’s rally was powerful but on light volume and broke no new ground in terms of a trend change or market condition.
ETF News You Can Really Use
Major U.S. indexes and ETFs advanced for the week with the Dow Jones Industrial Average (DIA) adding 3.4%, the S&P 500 (NYSEARCA:SPY) gaining 3.6% and the Nasdaq (QQQ) climbing 4% over the holiday shortened week. It was a short, low volume week but that is now in the rear view mirror as traders and institutional managers return from vacation.
News from China was positive as the country’s PMI rose to 50.4 in November to put it back into expansion mode.
In Europe, finance ministers were unable yet again to reach a deal on Greece and tensions were defused in the Middle East with a cease fire agreement between Hamas and Israel. However, the Middle East is never peaceful for long as protestors gathered in Cairo to protest what is apparently a strong arm takeover by new President Morsi that triggered a stock market plunge of more than 9% on Sunday. Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.
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