Fears that the European Central Bank might decide to debase the euro at Thursday’s ECB meeting decreased the enthusiasm of American investors. The American stock indices made a slight retreat on Wednesday ahead of Thursday’s ECB meeting in Brussels.  There has been some concern that French President François Hollande could succeed in his efforts to convince the European Union to control the euro’s exchange rate (i.e. to debase the euro).  A weaker euro would strengthen the dollar, making American exports less competitively-priced in foreign markets.  The ongoing debasing of the Japanese yen has facilitated undercutting prices of American products by Japan’s exports (NYSEARCA:FXY). As of 2:24 EST, the Dow Jones Industrial Average declined 21 points (0.15 percent) to 13,958.  The S&P 500 Index declined 0.20 percent to 1,508 (NYSEARCA:SPY).  As the chart (at left) indicates, the S&P 500 remains above its previous resistance level of 1,470.  Its next resistance level is in the 1,550 – 1,570 range.  Its Relative Strength Index is 63.35 (Chart courtesy of  Stockcharts.com ).  The Nasdaq Composite fell 0.36 percent to 3,160 (NASDAQ:QQQ).  The Russell 2000 Index declined 0.22 percent to 906 (NYSEARCA:IWM).   Market Valuation, Inflation and Treasury Yields The “Dollar Bull” Index ETF (NYSEARCA:UUP) advanced 8 cents (0.37 percent) to 21.78 as of 2:04 EST. As of 1:52 EST, the S&P 500 Volatility Index – or VIX – advanced 2.19 percent to 14.02 and the VIX Short-Term Futures ETN rose 1.43 percent to 24.01 (NYSEARCA:VXX). The Euro STOXX 50 Index finished Wednesday’s trading session with a 1.28 percent drop to 2,617 – staying above its 50-day moving average of 2,538.  After breaking above its resistance level of 2,700 on January 21, the STOXX 50 is once again experiencing resistance at that level, which has been a barrier since the beginning of the year.  Its Relative Strength Index is 41.85 (NYSEARCA:FEZ).  The FTSE 100 Index advanced 0.20 percent to 6,295 (NYSEARCA:EWU).  The German DAX Index fell 1.09 percent to 7,581 (NYSEARCA:EWG).  France’s CAC 40 Index sank 1.40 percent to 3,642 (NYSEARCA:EWQ).  Spain’s IBEX 35 Index dipped 0.26 percent to 8,072 (NYSEARCA:EWP).  Italy’s FTSE MIB Index declined 0.42 percent to 16,641. (NYSEARCA:EWI).   Three Things the Bears Need to See As of 2:14 EST, the euro advanced 0.50 percent against the dollar, trading at $1.3516 (NYSEARCA:FXE). On London’s ICE Futures Europe Exchange, March futures for Brent crude oil advanced by 2 cents (0.02 percent) to $115.59/bbl. (NYSEARCA:BNO, NYSEARCA:USO). April Gold Futures advanced by $3.90 (0.23 percent) to $1,677.40 per ounce (NYSEARCA:GLD). ETF Summary:  SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA)  -0.02%  as investor enthusiasm was restrained ahead of Thursday’s ECB meeting, despite a number of positive earnings reports. SPDR EURO STOXX 50 ETF (NYSEARCA:FEZ)  -1.50%  as investors were spooked by the possibility that Silvio Berlusconi could return to power in Italy and disrupt the progress which has been achieved in stabilizing the Eurozone economy as well as the sovereign debt crisis. Consumer Discretionary Select Sector SPDR ETF (NYSEARCA:XLY)  +0.18%  following the better-than-expected earnings reports from Disney (NYSEARCA:DIS) and Zynga (NASDAQ:ZNGA).   Casino Stocks Crap Out iShares Barclays 20+ Year Treasury Bond Fund (NYSEARCA:TLT)  +0.61%  as European bond yields rose with the fear that Silvio Berlusconi could return to power in Italy, the safe haven of U.S. Treasuries became almost irresistible.   Learn More About iShares ETFs SPDR S&P 500 INDEX ETF (NYSEARCA:SPY)  -0.15%  as investors became more risk-averse ahead of the ECB meeting after experiencing what a weakened euro did to American stock prices on Monday. Bottom line:  On the eve of the ECB meeting in Brussels, fear that François Hollande’s efforts to debase the euro could succeed caused investors to remain cautious, sending the major American stock indices into a slight retreat.   Sign up for Wall Street Sector Selector’s FREE Stock Market Timing Indicator!    Disclaimer: The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector’s Disclaimer , Terms of Service , and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.