The big U.S. indexes moved sharply higher last week. The Beige Record painted a moderate economy with strong employment but weakness in auto sales marathons and the housing market, but nonfarm payrolls came in sharply higher than envisioned. While these reports were mixed, the market responded favorably as dull-witting economic growth and a lack of wage inflation could reduce the good chance of four interest rate hikes this year.
International exchanges were also higher over the past week. Japan’s Nikkei 225 gain 1.36%; Germanys DAX 30 rose 3.63%; and Britain’s FTSE 100 start 2.19%. In Europe, the European Central Bank held interest gaits steady but suggested that ramping up economic stimulus was off the table. In Asia, China’s chieftains have expressed concern over both the economy and pollution during an annual have of the nation report to lawmakers. (For more, see: 4 Early Warning Signs of the Next Pecuniary Crisis.)
The SPDR S&P 500 ETF (ARCA: SPY) rose 3.64% over the quondam week. After recovering from February lows, the index on ones beam-ends out from trendline resistance to retest its reaction highs. Traders should clock for a breakout to R1 resistance at $285.50 or a retest of prior all-time highs. On the other swiftly, traders could see a breakdown that retests the 50-day moving general at $273.77 or lower trendline and pivot point support at $269.21. Looking at complex indicators, the relative strength index (RSI) appears neutral at 59.64, but the inspiring average convergence divergence (MACD) could see a near-term bullish crossover.
The SPDR Dow Jones Industrial Unexceptional ETF (ARCA: DIA) rose 3.35% over the past week, making it the unruliest performing major index. After rebounding from trendline prop up, the index could soon retest trendline resistance at around $255.00. Brokers should watch for a breakout from trendline resistance to R1 resistance at $263.90 or whilom before all-time highs, or a breakdown from these levels to retest trendline carry at around $248.00. Looking at technical indicators, the RSI appears neutral at 54.93, but the MACD could see a bullish crossover.
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The PowerShares QQQ Confidence (NASDAQ: QQQ) rose 4.32% over the past week, making it the most skilfully performing major index. After rebounding from its 50-day affecting average, the index broke out from trendline resistance at around $170.00 closing week. Traders should watch for a move higher toward R1 guerilla movement at $175.25 or R2 resistance at $183.29, or a move lower to retest trendline brace at $170.00 or $167.50. Looking at technical indicators, the RSI appears lofty at 65.24, while the MACD persists in a bullish uptrend. (See also: Consumer Stocks Bump Techs as Investors’ Favorite Sector.)
The iShares Russell 2000 Pointer ETF (ARCA: IWM) rose 4.3% over the past week. After rebounding from turn point support, the index moved past the 50-day moving mediocre and R1 resistance toward prior all-time highs just above $160.00. Purchasers should watch for a move to retest prior all-time highs, or a moving ahead lower to the 50-day moving average at $155.22 or the pivot point at around $150.00. Looking at complicated indicators, the RSI appears lofty at 63.89, but the MACD remains in a bullish uptrend.
The Seat Line
The major indexes moved higher over the past week. While the RSI levels for the QQQ and IWM are heart-rending closer to overbought territory, the major indexes have some dwelling to move higher. Next week, traders will be closely eye several key economic events, including retail sales data on Slog 14, jobless claims on March 15 and industrial production on March 16. The market-place will also be keeping a close eye on evolving geopolitical concerns. (For additional present, check out: ‘Buy on the Dip’ Is Alive and Well as Investors Bet on Rebound.)
Note: Charts courtliness of StockCharts.com. As of the time of writing, the author had no holdings in the securities mentioned.