Courtesy of John Nyaradi.
Bulls struggle and fail in face of heavy resistance
Major Indexes and ETFs recouped yesterday’s loses today, however markets still face massive headwinds to break. The S&P 500 gained .62%, the Dow Jones Industrial Average gained .22%, the NASDAQ 100 added .74%, and the Russell 2000 Index gained .53%. Major indexes certainly seem stuck at current levels, and major index ETFs are certainly flat as well as the SPDR S&P 500 ETF (NYSEARCA:SPY) gained .52%, the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) added .22%, the PowerShares QQQ Trust Series 1 ETF (NASDAQ:QQQ) grew .79%, while the iShares Russell 2000 Index ETF (NYSEARCA:IWM) added .52%.
We have been talking about this flat market all week, and well, the bulls simply have not been able to pull off any magical stunt to break past the barrier. How long the market stays flat is tough to say, however it is becoming clearer and clearer that the bulls are not cutting it.
Perhaps all of today’s threatening news in the world spooked the bulls. Christine Lagarde stated that the world is in danger today largely due to Europe, while our friend Dr. Ben warned that America still stands on the brink of a fiscal cliff because of the deficit and fragility of the labor market. The financial sector however had a big day, while today’s economic reports were nothing to write home about as employment was flat and personal income and construction were down.
So all in all we have a frustratingly flat market, a scared Largarde and Dr. Ben, and lackluster economic reports. Tomorrow is another day, and thank God its Friday.
Bottom Line: Art Though Bulls Returning? Not yet, as the market remains flat as a pancake. With major big wigs like Lagarde and Bernanke saying the world remains on the brink of collapse, I still remain optimistic that the US economy will continue to improve slowly, so long as nothing catastrophic occurs. And, TGIF tomorrow!
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