Markets and ETFs appear to be limbo, as today’s miniscule gains tried to counter earlier losses. Will the bulls find the strength to push on?
Major indexes and index ETFs rose today, with the S&P 500 gaining .32%, the DJIA gaining .27%, the NASDAQ 100 adding .15%, and the Russell 2000 Index adding 1.05%. Index ETFs had the same results, as the SPDR S&P 500 ETF (NYSEARCA:SPY) added .32%, the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) gained .33%, the PowerShares QQQ Trust Series 1 ETF (NASDAQ:QQQ) lost .06%, and the iShares Russell 2000 Index ETF (NYSEARCA:IWM) gained 1.05%.
All in all, today’s gains were not impressive by any means, and coupled with the performance of major indexes for the past three days, it appears that markets are in limbo between the bulls and the bears. Whether the bulls or bears take control is anyone’s bet, however judging that the bulls were in charge for nearly three months in a row since the beginning of 2012, I am hesitant to think, at least for the short term, that the bulls can mount a serious offensive and keep the uptrend trending. At the end of the day, whatever comes up must eventually come down.
Today’s markets were probably aided by the improved New Home Prices report released today. The report indicated that new home prices have increased, however purchases of new homes has decreased. Again, positive and negative news, same old story for the housing sector, the last anchor to our US economic recovery.
Bottom Line: Pretty quiet day on Wall Street today as the bulls managed to fight back a little in light of better housing stats. All in all however, the market appears to be correcting, and will likely continue for some time. After this year’s monster start, it is almost about time for a correction.
John Nyaradi is the author of The ETF Investing Premium Newsletter.