Courtesy of John Nyaradi.
Markets finished flat as pancakes today as Bernanke withheld the punch bowl once more
Markets and index ETFs finished flat today after yesterday’s 2.5% rush. The SPDR S&P 500 ETF (NYSEARCA:SPY) gained .06%, the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) gained .48%, the PowerShares QQQ Trust Series 1 ETF (NASDAQ:QQQ) lost .40%, and the iShares Russell 2000 Index ETF (NYSEARCA:IWM) lost .65%.
US markets likely finished flat today as apart of a corrective maneuver after yesterday’s excellent gains. Furthermore, Dr. Ben and his Fedsters withheld the punchbowl once again during his Congressional Testimony today; Dr. Ben emphasized that he was ready for adverse economic pressures from abroad, however he did not specify any details regarding a QE3 or other such measures too keep the US financial system afloat, should the rest of the world implode. Investors have been vying for a QE3 as of late, and Dr. Ben’s dry punchbowl did not make anyone happy. Read more about what Dr. Ben did not say here.
Meanwhile, China decided to cut its benchmark one-year deposit interest rate by 0.25 percent (see China update) which did nothing really to push the bulls. Also today’s dubious unemployment report did not help matters either.
Bottom Line: Markets finished flat today after yesterday’s fireworks and an overall fear regarding general world circumstances and our Central Bank’s complacency to stop the snowball of economic despair. More pain likely awaits as Europe continues to burn in the background.
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