Weekly ETF Rewind: Correction Should Have More to Go

After alternating moves higher and lower, the S&P 500 (SPY) ultimately posted a moderate -2.2% loss late last week after a disappointing June jobs report [Link]. In fact, among the tracked Exchange Traded Funds, only the U.S. Dollar managed to eke out a small gain of +0.3% during the Fourth of July holiday shortened week.

(Click Image to Enlarge/ Glossary)

Week Twenty-Eight of 2009 kicks off second quarter earnings with Alcoa (AA) after the bell on Wednesday, as follows:

• Yahoo! - U.S. Economic Calendar
• Yahoo! - U.S. Earnings Calendar

While last week's down move was extreme enough to provide some mild oversold readings, I would be quite surprised if the corrective move didn't have more room below early into the upcoming earnings season. The only good news there is that options insurance remains relatively inexpensive with the VIX (implied options volatility) still under 30. Have a Terrific Holiday Weekend!

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Comments

[squark62:]

agreed that the S&P 500 index is headed down and could have a ways to go before it establishing a new meaningful bottom.

Jul 05 08:17 PM