ETF Headline Watch: Mar. 2, 2012

ETFs to watch for Friday are centered in commodities, Euro Dollar and major U.S. indexes

After a choppy, sloppy week, we see more of the same kind of action on Friday.

ETFFs making headlines today are:

SPDR GOLD TRUST: GLD opening lower and hovering around flat line in early trade.  Gold and the second largest ETF are being closely watched to see if the $1700 level can hold (gold is $1709 in morning trade) as this is a psychologically important level and home to many stop loss triggers and is just above its 50 day moving average.

United States Oil Fund USO -1.44% in early going Friday as oil dropped below $108 on Saudi denials of a fire or explosion in its pipeline system.  Some analysts believe the pipeline explosion theory was a conspiracy by the Iranians to boost oil prices in the face of the sanctions against Iran.

SPDR S&P 500 ETF SPY the biggest ETF in the world and proxy for the U.S. stock market hovered between gains and losses after opening lower.  The index is stuck against significant resistance and has been in a sideways channel at current levels for ten days. A sustained break above 1372 will be necessary to resume the uptrend.

Currency Shares Euro Trust FXE which tracks the Euro dollar declined 0.76% in early trading as the Euro dollar fell to $1.3205.  Concern remains about a European recession, the viability of the Greek bailout which still isn't complete, a decline in retail sales in Germany and falling bond prices in Spain which could be another problem child after Greece.

Bottom line: Global markets remain nervous in spite of improving economic reports in the United States.  Major indexes in the United States remain overbought and subject to significant correction.  Europe remains on edge.

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