Worries plaguing stock ETFs include a bank run in Europe, potential dissolution of the euro currency, slowing growth in the emerging markets and a double-dip recession in the U.S. [Stock ETFs Volatile on Laundry List of Concerns]
“A clear support shelf sits across 1100, the bottom of the one hundred point range of the past two weeks,” Coe wrote Monday. “Should that break decisively then be prepared for a lead-balloon drop to 1000, the lows from last summer. Such a move would provide the necessary jaw-dropper of a washout that this market really needs to shake-out the vacillating bulls.”
The iShares S&P 500 (NYSEArca: IVV) also tracks the U.S. blue-chip index. The ETF was down 9.6% year to date as of Aug. 19, according to Morningstar.
