Exchange traded funds tied to the major U.S. equity indices rebounded this week along with Treasury yields as they try to climb back above their major trendlines.
In afternoon trading Friday, the S&P 500 was on track for a 3.5% weekly gain, the Dow climbed 3.5% and the Nasdaq Composite added 3.8%. All three benchmarks were slightly above their 200-day exponential moving averages.
Stocks enjoyed an oversold bounce this week with bond yields. The iShares Barclays 20+ Year Treasury Bond Fund (TLT) was set for a loss of more than 3% this week.
A pullback in volatility-linked ETFs this week signals fear is receding somewhat after the recent sell-off in riskier assets on Eurozone debt concerns.
Gold ETFs were choppy this week and poised to close with losses of about 2% as the precious metal tests the $1,600 an ounce level.
Gold seems to be moving on speculation of more quantitative easing from the Federal Reserve and other central banks. [Investors Returning to Gold ETFs]