The major U.S. indexes were mixed over the past week as of mid-day trading on Friday afternoon. While the Federal Reserve hiked interest rates by 25 basis points, the central bank suggested that it only expects to hike rates two more times this year. Government bonds and the U.S. dollar moved lower, while equity markets haven’t quite decided how to digest the news and remained mostly mixed throughout the week.

International markets were also mixed over the past week, as of mid-day trading on Friday afternoon. Japan’s Nikkei 225 fell 0.42%; Germany’s DAX 30 rose 1.1%; and, Britain’s FTSE 100 rose 1.05%. In Europe, investors applauded Mark Rutte’s success over Geert Wilders – a populist candidate – in the Netherlands’ election. In Asia, the Bank of Japan offered an upbeat assessment of the country’s economy but held its fire citing external risks.

The S&P 500 SPDR (ARCA: SPY) fell 0.08% over the past week, as of mid-day trading on Friday afternoon. After reaching R1 resistance at the beginning of the month, the index fell to its lower trend line support before rebounding slightly. Traders should watch for a breakout from R1 resistance to the upper trend line and R2 resistance at $242.97 or a breakdown from its trend line support to the pivot point at $232.52. Looking at technical indicators, the RSI still appears lofty at 64.56, while the MACD remains in a bearish downtrend.

The Dow Jones Industrial Average SPDR (ARCA: DIA) fell 0.04% over the past week, as of mid-day trading on Friday afternoon. After reaching R1 resistance at $211.33 earlier this month, the index has trended toward its lower trend line support. Traders should watch for a breakout from R1 resistance to the upper trend line and R2 resistance at $215.08 or a breakdown from its lower trend line to its pivot point at $204.21. Looking at technical indicators, the RSI remains overbought at 68.10 while the MACD remains bearish.

The PowerShares QQQ Trust (NASDAQ: QQQ) rose 0.34% over the past week, as of mid-day trading on Friday afternoon. After briefly touching R1 resistance at $131.92 earlier this month, the index moved lower before gaining ground this week. Traders should watch for a breakout from R1 resistance to the upper trend line and R2 resistance at $134.09 or a move lower to lower trend line and pivot point support at $128.26. Looking at technical indicators, the RSI appears very overbought at 73.09 while the MACD remains in a bearish downtrend.

The iShares Russell 2000 Index ETF (ARCA: IWM) rose 1.7% over the past week, as of mid-day trading on Friday afternoon. After touching its lower trend line and S1 support at $134.38, the index rebounded past its pivot point at $137.35. Traders should watch for an ongoing move higher toward R1 resistance at $140.81 or a move lower to re-test S1 support. Looking at technical indicators, the RSI appears neutral at 54.58 while the MACD could see a bullish crossover in the near-term.

The Bottom Line

The major U.S. indexes were mixed over the past week with RSI readings remaining overbought and MACD readings appearing bearish – except for the Russell 2000 index. Next week, traders will be watching several key economic indicators, including existing home sales on March 22, new home sales and jobless claims on March 23, and PMI data on March 24.

Note: Charts courtesy of StockCharts.com. As of the time of writing, the author had no holdings in the securities mentioned.

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