Index ETFs Stay In Holding Pattern

Courtesy of John Nyaradi.

Index ETFs finished mixed and flat despite the looming fiscal cliff and new Greece worries

Index ETFs finished mixed and flat today, despite the fact that the fiscal cliff draws nearer and Greece is again rearing its ugly head.  The SPDR S&P 500 ETF (NYSEARCA:SPY) gained .08%, the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) gained .09%, the PowerShares QQQ Trust Series 1 ETF (NASDAQ:QQQ) lost .02%, and the iShares Russell 2000 Index ETF (NYSEARCA:IWM) lost .29%.

It appears that by and large, index ETFs are waiting for the next move, as most of them (DIA, QQQ, IWM) have completely broken their 200 Moving Day Average floor of support.  In the case of NYSEARCA:SPY, the 200 Day Moving Average is approaching quickly, and it will take a significant push to move up again.  In the case of DIA, QQQ, and IWM, again, a significant push will be required to break through what was initially a strong support level.

As mentioned earlier, Greece has again taken center stage as European finance ministers reconvened again to discuss loans for Greece, any upset here could have serious implications for the Euro currency and US markets.  And the International Energy Agency also projected that the US will be the largest oil exporter in the world by 2017…now that is a nice thought.

Bottom Line: Index ETFs continue to move sideways, waiting for more news to emerge regarding the fiscal cliff and Greece.

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