Index ETFs decline slightly for Tuesday as Congress continues to stall fiscal cliff talks
Index ETFs declined slightly more today after fiscal cliff talks stalled again. The SPDR S&P 500 Index ETF (NSYEARCA:SPY) lost .14%, the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) lost .13%, the PowerShares QQQ Trust Series 1 ETF (NASDAQ:QQQ) shed off .06%, and the iShares Russell 2000 Index ETF (NYSEARCA:IWM) gained .12%.
All and all, today was a pretty mixed and flat day, as investors still do not know where Congress or the President will take us in terms of the fiscal cliff. With only six days left until Congress vacates for Christmas and just 27 days until the end of the year, investors appear to be idling and waiting for what happens next. And hopefully some kind of deal will be reached before the end of the year, or else 2013 will likely be unlucky 2013.
From a technical standpoint, the S&P 500 still rests at the 1407 level, stubbornly stuck below that pesky 50 Day Moving Average resistance line. The Bulls will need Santa’s help and Congress’ help to mount a heavy offensive and bring in the holiday cheer, and I still do not see a breakthrough until some kind of fiscal deal is made, as the fiscal cliff issue has been the center of attention since the US elections.
Today’s Residential Real Estate report indicated an increase in home asking prices for the month of November, which is good news. The Eurozone has indicated that more interest rate cuts are likely given the lack of “inflationary pressure” in the region: read, growth is stalling, prices are rising. Not so good news.
Bottom Line: Investors continue to wait and hold as Congress continues to stall and drag their feet with the fiscal cliff.