“The weakness is news driven — well the lack of it from Washington. When details of a debt ceiling deal do cross the newswires it will likely cause the fund to pop higher rather like the sudden release of a balloon held forcibly under water,” said technical analyst Tarquin Coe.
“Consequently we are not advocating bearish trades in this climate as they may soon be severely squeezed. In the meantime we continue to favor fat dividend paying stocks or precious metal related stocks and ETFs,” he wrote in a newsletter Wednesday. [Gold Miner ETFs Rally Back Near Lifetime Highs]
SPDR S&P 500 ETF
IVV Chart Source: StockCharts.com.