Breaking News

ETFs Move Higher, S&P 500 Breaks 1500

By Wall Street Sector Selector (John Nyaradi)Stock MarketsJan 28, 2013 12:51AM ET
ETFs Move Higher, S&P 500 Breaks 1500
By Wall Street Sector Selector (John Nyaradi)   |  Jan 28, 2013 12:51AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
ETFs and stocks move higher and S&P 500 closes above 1500

US ETFs and stocks put in another powerful week to overcome the continuing sell off in Apple (AAPL) and close above the psychologically and technically important level of 1500 in the S&P 500 (SPY).

Friday’s close marks the highest close for the S&P 500 (SPY) in five years and leaves the index just below its nominal all-time high.

For the week, the Dow Jones Industrial Average (DIA) gained 1.8%, the S&P 500 (SPY) added 1.1% and the Nasdaq (QQQ) climbed 0.6%.

Apple (AAPL) fell farther on Friday and gave up its number one spot to Exxon as largest company by market cap.

On My ETF Radar
A quick glance at the chart of the S&P 500 (SPY) shows us that the index is at overbought levels of 74.41 on RSI, however, momentum is quite positive, as depicted by MACD, the trend is strongly positive and the 50 and 200-day moving averages have turned higher, as well.

Support is at 1450-1470 which could provide a floor when the inevitable correction begins to take shape. Overbought readings and excessively bullish sentiment point to an overextended market that is due for a pause or pullback within the context of a powerful uptrend.

ETF News You Can Really Use
Last week saw positive news from home prices and improving weekly unemployment claims. Purchasing Managers Indexes from around the world came in positive as Germany and China surprised to the upside, and December’s U.S. leading economic indicators rose 0.5%.

On the negative side of the ledger, weak reports have come from the Federal Reserve Banks of Richmond, New York and Philadelphia which indicate a decline in manufacturing activity in the eastern regions of the United States. This corresponds to declining University of Michigan Consumer Confidence while new home sales for December fell 7.3%.

Other than Apple, (AAPL) earnings reports were relatively positive last week and the coming week’s major earnings reports include the likes of Exxon (XOM), Caterpillar (CAT), Yahoo (YHOO) and Amazon (AMZN).

The week ahead also brings a wave of economic reports including durable goods and pending home sales on Monday, Case Shiller housing price index and consumer confidence on Tuesday, ADP employment, GDP and the FOMC meeting on Wednesday, weekly jobless claims, spending, income and Chicago PMI on Thursday, and Friday wraps up a big week with January Unemployment, Nonfarm Payrolls and Markit PMI.

Bottom line: ETFs and stocks continue to dazzle as they break through resistance levels and now push towards new all time highs. Extreme resistance lies ahead and so U.S. ETFs and stocks stand at a pivotal turning point as they attempt to break higher. A successful breach of these levels could yield to continuation of the recent advance while failure here could set the stage for a significant decline.

Disclaimer: The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector’s Disclaimer, Terms of Service, and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.
ETFs Move Higher, S&P 500 Breaks 1500

Related Articles

ETFs Move Higher, S&P 500 Breaks 1500

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Peter dikeakos
Peter dikeakos Jan 29, 2013 1:27AM GMT
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If Americans are unable to increase their spending; but, because of the new Taxes, fees and levies upon them, they decrease their spending and Recession is imminent. ~ If the Government picks up the slack and increse Its spending by borrowing more money; ~ I foresee a big run on the $ (DXI) with very negative consequences for Stocks. ~ I think, that if the Fed does not support the $ Dollar at DXI,79, the big debacle will start. ~ Now, the Politicians are better talkers than me and will have the bandage ready for the wound; but, will there be need for anti biotic !? I think so. ~Why is Timmy Geithner resigning !?
0 0
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email