ETF Outlook for Friday, December 6, 2013
SPDR S&P 500 ETF (NYSE:
The much-anticipated monthly jobs number comes out today
before the opening bell and is expected to be a major market
mover. The SPY has fallen for five consecutive sessions heading
into today and is now trading 1.2 percent below the all-time high
set last week.
The ETF has moved from overbought to near oversold levels very
quickly even though the loss has been minimal over the losing
streak. Considering the pullback has been so swallow, it
reaffirms the bullish case that stocks will likely move higher
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The initial level of support to watch on SPY is prices support
at $177.50, which was a previous resistance level. The next level
to keep an eye on is the 50-day moving average, currently at
ProShares UltraShort 20+ Year Treasury ETF (NYSE:
Also poised to move on the jobs number are interest rates. A
better than expected number will likely send rates higher and
bonds lower as the odds of a tapering will increase.
TBT closed a few pennies from a two-month closing high
yesterday and any selling in bonds will lead to a major breakout
for TBT. With the 10-year bond already yielding the highest rate
in three months it will not be a surprise to see TBT join in the
breakout. Assuming a breakout occurs the next level of resistance
is at $82/share.
SPDR Gold ETF (NYSE:
Monday saw GLD close at the lowest level in five months and
that was followed by a two-day rally in the precious metal ETF.
Yesterday the selling resumed when GLD gapped down on the open
and was able to salvage the day with a loss of 1.4 percent.
Investors will be watching the jobs number closely as a good
print will lead to the belief of an upcoming taper that will lead
to commodities, especially precious metals, to move lower.
Support on GLD is the low of Tuesday - $117.23/share.
iShares MSCI Emerging Market Index ETF (NYSE:
Even thought investor would assume the emerging markets are
disconnected from the U.S. jobs number and Fed policy, that
belief is not accurate. One of the hardest hit asset classes
during the "taper sell-offs" the last few months has been the
emerging market stocks.
EEM fell by 0.6 percent yesterday and closed at a fresh
three-month low. More taper talk will hit the emerging markets
hard tomorrow and with EEM sitting near important support the
action in the ETF will be key to the end of the year action. The
support level to watch is $40.70.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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