Indices and Index ETFs Blast Off Into Q2

The bulls definitely took charge yesterday into Second Quarter 2012 as the S&P 500 rose .74%, the DJIA rose .40%, the NASDAQ 100 rose .91%, and the Russell 2000 Index rose 1.24%.  Index ETFs charged into Q2 2012 as well as the SPDR S&P 500 ETF (NYSEARCA:SPY) rose .60%, the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) rose .38%, the PowerShares QQQ Trust Series 1 ETF (NASDAQ:QQQ) rose 1.04%, and the iShares Russell 2000 Index ETF (NYSEARCA:IWM) rose 1.23%.
 
As overbought, as oversold, as over-extended as the markets appear to be on paper, the Bulls have managed to surge forward again despite a strong ceiling.  Perhaps yesterday's positive ISM report sparked the rally, although likely markets rose on the general fervor of the bulls in control.  Keep in mind too that earnings season is here, and investors will be keen to watch the big heavyweights such as Alcoa (NYSE:AA), Apple (NASDAQ:AAPL), and General Motors (NYSE:GM) as they report their much anticipated green numbers in the near future.
 
And all of this growth would be fine and dandy if it weren’t for the European monster which is still hiding under the bed.  With more Silk Road Woes on the horizon in terms of continued European and Asian market problems, one wonders how indeed US markets can continue to shield themselves from the likes of a possible European recession as indicated by today’s negative PMI reports for Germany, Italy, Greece, Spain, and France?  Not to be pessimistic, but the bulls better be strong to ride all of this world nonsense out.
 
Bottom Line: The bulls grabbed the reigns yesterday and soared into profits for the first day of Second Quarter 2012.  Whether they can sustain the charge or not is anyone’s guess, but I am leaning to the negative side considering the massive amount of resistance that markets face in terms of ceilings and continued European drama.  If Europe manages to stay alive however and the Q2 Earnings Season turns red hot, then perhaps the bulls do have a fighting chance.
 
Disclaimer: Wall Street Sector Selector trades a wide variety of ETFs and positions can change at any time.