Exchange traded funds indexed to the S&P 500 rose back above the 50-day simple moving average in Monday’s rally after breaking the technical indicator during the summer sell-off.
SPDR S&P 500 ETF (NYSEArca: SPY) jumped about 2% in early trading Monday.
Gold ETFs also climbed on hopes of a banking sector recapitalization in Europe. [Gold ETFs Gain as Dollar Weakens After EU Pact]
In currency ETFs, the euro strengthened against the dollar after Germany and France pledged to address the Eurozone debt crisis before a Group of 20 meeting in early November. [Euro ETFs Jump on Bank Recapitalization Hopes]
The S&P 500 on Monday climbed above its 50-day simple moving average but the steep downward slope of the indicator is troubling, writes J.C. Parets at All Star Charts.
SPDR S&P 500 ETF
Full disclosure: Tom Lydon’s clients own SPY.
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.