Saturday, March 14, 2009

ETF Rewind - Week 11 (03/13/09)

(Click Image to Enlarge/ Glossary)

Last week's bear-market rally leaving the S&P500 (SPY) higher by +10.4% makes the index's four-week loss of -9.0% all the more poignant. Highlighting the rotation into equities was the slight weakness in Bonds and Commodities (TLT -1.5%; DBC -0.4%).

Week Twelve of 2009 features several key Manufacturing, Housing, and Inflation reports, not to mention a Federal Open Market Committee meeting, as follows:

As much as we were long overdue this bounce, the ferocity of the minor recovery has nearly every major index, sector and style flashing overbought on the short-term Price Index, as highlighted in both the table above and in the charts below. A small pullback going into expiration next week -- finding support well above the prior lows -- before starting a second leg higher would be a healthy and desirable "pause that refreshes."

Hope springs eternal, except perhaps in China were "worry" over our economy has apparently been expressed (AP - Premier Worries; Bloomberg - Obama Expresses Confidence). Enjoy your weekend!

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