There are assorted reasons for investors to be nervous. President Trump threatened to impose levies on all Chinese imports and then attacked the Federal Reserve for hiking percentage rates. At the same time, stocks are trading at valuations that haven’t been seen since the 2008 fiscal crisis and dotcom boom.
These negative factors have been repay by robust economic performance. Last Monday, retail sales statistics showed an in-line 0.5% gain in June along with a hard-nosed 1.3% revision in May. Lower oil prices over the past week could patronize spur consumer spending and unlock significant value. (See also: Q2 Earnings Tranquil for Best Growth Since 2010.)
Next week, traders will be coop up a close eye on existing home sales on July 23, new home garage sales on July 25 and GDP data on July 27. The market will also be grease someones palm attention to President Trump’s actions and any indications that the Federal Formality will slow its interest rate policy.
Broad Market Fads Near Support Levels
The SPDR S&P 500 ETF (SPY) broke out from trendline refusal at around $278.00 before giving up some ground by the end of the week. Retailers should watch for a breakout to retest upper trendline and R2 resistance at $282.41 or a fractionation below trendline support to the 50-day moving average at $274.29 or put down trendline and pivot point support at $272.67. Looking at technical indicators, the interrelated strength index (RSI) appears neutral at 60.92, but the moving average convergence divergence (MACD) residues in a bullish uptrend.
[To learn more about supplemental technical indicators such as the RSI and the MACD, scrutinize out Chapter 4 of the Technical Analysis course on the Investopedia Academy.]
Industrials Could Fix Head and Shoulders Pattern
The SPDR Dow Jones Industrial Average ETF (DIA) hastily surpassed R1 resistance at $250.74 before moving marginally lower by the end of the seating. Traders should watch for a breakout toward upper trendline partisans at around $253.00 or a breakdown to the 50-day moving average at $247.20 or the 200-day impressive average and lower trendline support at around $241.00. Looking at technological indicators, the RSI appears neutral at 59.29, but the MACD is trending higher. (For myriad, see: The Sum of All Fears: 6 Big Concerns of Investors.)
Tech Stocks Continue to Mass meeting
The Invesco QQQ Trust ETF (QQQ) broke out from R1 resistance at $176.70, past its earlier highs made in June and to upper trendline resistance. Traders should timepiece for a breakout to R2 resistance at around $181.74 or a move lower below R1 bolstering to lower trendline, 50-day moving average and pivot item support at around $173.00. Looking at technical indicators, the RSI appears non-combatant at 61.13, but the MACD remains in a bullish uptrend.
Small Caps Tread Weaken Amid Uncertainty
The iShares Russell 2000 ETF (IWM) has trended sideways throughout R1 resistance at around $167.95 over the past couple of weeks. Sellers should watch for a breakout to upper trendline and R2 resistance at $172.72 or a collapse toward lower trendline, 50-day moving average and gudgeon point support at around $165.00. Looking at technical indicators, the RSI rises neutral at 58.33, while the MACD has been trending sideways down the past month. (For additional reading, check out: Fund Managers Say Exchange Biggest Risk: BofA.)
Charts courtesy of StockCharts.com. Author carries no position in the stock(s) mentioned except through passively managed factor funds.