ETFs, Stocks Close Out Rough Week With Small Gains

It was a wild week for U.S. equity markets as the Presidential election took center stage on Tuesday, only to be immediately followed by renewed worries about the fiscal cliff and ongoing problems in Europe.

Today’s major economic report was positive as consumer confidence rose while President Obama and House Speaker John Boehner laid out their opening positions for the next round of debates over the nation’s budget problems and how to solve the rapidly approaching fiscal cliff.

In a choppy session, ETFs and stocks enjoyed a morning rally that faded as the fiscal debate heated up and the weekend approached.
Major U.S. Index ETFs

For the day, the Dow Jones Industrial Average (DIA) gained 0.03% while losing 2% for the week, its third straight week in the red.

The S&P 500 (SPY) gained 0.17% but gave up almost 2.5% on the week, while the Nasdaq 100 (QQQ) gained 0.45% for the day and lost 2.66% for the week.

The Russell 2000 (IWM) gained 0.17% on Friday but declined 2.3% from last Friday’s close.

On a technical basis, the picture is rather grim as the Dow Jones Industrial Average (DIA) Nasdaq (QQQ) Russell 2000 (IWM) all closed below their 200 day moving averages on Friday. The 200 day average is widely watched as a line between bull and bear markets and so if the major indexes are unable to regain this critical level, we can expect more downward pressure on U.S. ETFs and stocks.

Bottom line: Major U.S. stock markets and ETFs get pummeled in post election swoon and shadow of fiscal cliff. Technical indicators are poor and expect more volatility as the budget debate unfolds again.

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