Courtesy of John Nyaradi.
Major Index ETFs dropped today on continued Greek fears
Major indexes dropped today on continued fear of Greece, as the S&P 500 dropped .04%, the Dow Jones Industrial Average dropped .13%, the NASDAQ lowered .13%, and the Russell 2000 decreased .33%. Major index ETFs followed suite as the SPDR S&P 500 ETF (NYSEARCA:SPY) dropped .08%, the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) shaved off .19%, the PowerShares QQQ Trust Series 1 ETF (NASDAQ:QQQ) dropped .08%, and the iShares Russell 2000 Index ETF (NYSEARCA:IWM) dropped .42%.
Although markets did not drop that hard today, many investors are likely anticipating the outcome of Greece debt talks, as the Greeks yet to decide on a deal and have further postponed their meetings until tomorrow. If the Greeks do not accept or cannot compromise on certain conditions mandated by the EU, then Greece will not receive another EU bailout, which would likely lead to a Grecian default, and well, a lot of pain for Greece, the Euro, the US, and the whole world.
Although the EU, led by Team “Merkozy,” is likely trying to prod Greece politically with deadlines and mandates and incentives, I do have a hard time believing that the EU would let Greece slide through the cracks again unless there was absolutely nothing else to be done. Maybe we are at that scary point already, it is hard to say.
Today’s slight downtrend was also likely a small correction from Friday’s ETF and market highs, as last week markets broke many records on better employment reports and other improved economic data.
Tomorrow is a monster day as Greece will apparently have a deal struck in some shape or form; also Job Earnings and Consumer credit spending reports will be released in the morning.
Bottom Line: Indexes and ETFs did not like Greece today, as the debt stricken country still has not reached an agreement over measures to accept EU bailout money. Indexes and ETFs also likely corrected themselves today after a meteoric week of growth last week. Be wise and weary, as tomorrow could be a complete Grecian bloodbath or something quite different entirely.
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