Major U.S. indices moved largely lower this week with small-cap stocks experiencing the greatest losses. Ongoing problems in emerging markets like Argentina and Turkey were largely responsible for the sell off earlier during the week. On Friday, a lackluster employment report showed just 113,000 jobs added in January despite hopes for a recovery from December's 74,000 report that was blamed on the winter weather.

International markets experienced similar gyrations due to the turmoil in emerging markets. Japan's Nikkei 225 fell 3.03%; Britain's FTSE 100 rose 0.91%; and, Germany's DAX 30 fell 0.27% during the week. In Asia, investors remain concerned over slowing growth in China as well as problems in emerging markets like India. In Europe, divisions remain with Germany reporting a record surplus next to France's enormous deficit.

The SPDR S&P 500 (ARCA:SPY) ETF fell 0.12% this week as of early trading on Friday morning. After falling below its 50-day moving average at 180.67, the index rebounded from its S1 support at 175.06 near its pivot point at 180.00. Traders should watch for a breakout from the pivot point and 50-day moving average to R1 resistance at 183.12 or a move below S1 support to S2 support at 171.94. Looking at technical indicators, the RSI appears neutral at 45.86 but the MACD remains very bearish.

The SPDR Dow Jones Industrial Average (ARCA:DIA) ETF fell 0.26% this week as of early trading on Friday morning. After falling below its 50-day moving average at 160.55, the index moved down to its S1 support and 200-day moving average at 153.47 before rebounding towards its pivot point. Traders should watch for a breakout towards its pivot point at 159.25 or breakdown lower to S2 support at 149.95. Looking at technical indicators, the RSI appears neutral at 41.15 but the MACD remains bearish.

The PowerShares QQQ (NASDAQ:QQQ) ETF fell 0.1% this week as of early trading on Friday morning. After falling below its 50-day moving average at 86.32, the index moved back towards its pivot point at 86.68. Traders should watch for a breakout higher towards its trend line and R1 resistance at 88.59 or a move lower below its S1 support at 84.35 to S2 support at 82.44. Looking at technical indicators, the RSI appears neutral at 51.04 while the MACD remains in a bearish downtrend.

The iShares Russell 2000 (NYSE:IWM) ETF fell 2.16% this week as of early trading on Friday morning. After moving below its S1 support at 109.66, the index rebounded from its S2 support at 107.17 and began moving higher. Traders should watch for a breakout towards its 50-day moving average at 112.99 or move lower to retest its S2 support at 107.17. Looking at technical indicators, the RSI appears neutral at 42.21 but the MACD remains in a long-term bearish downtrend.

Summary

The major U.S. indices moved lower this week, falling below their long-term trend lines and price channels. Next week, traders will be watching a number of economic indicators including jobless claims and retail sales on February 13th as well as industrial production on February 14th. Traders will also be closely watching emerging markets and the U.S. Federal Reserve for any signs of change next week.

Charts courtesy of StockCharts.com.

Related Articles
  1. Chart Advisor

    Four Chart Patterns To Watch This Week

    This week is likley to reveal if the S&P 500 is in a consolidation with the expectation of a move higher, or if it's topping out. Here's four ways to play either scenario.
  2. Mutual Funds & ETFs

    Pimco’s Top Funds for Retirement Income

    Once you're living off the money you've saved for retirement, is it invested in the right assets? Here are some from PIMCO that may be good options.
  3. Chart Advisor

    Watch This ETF For Signs Of A Reversal (BCX)

    Trying to determine if the commodity markets are ready for a bounce? Take a look at the analysis of this ETF to find out if now is the time to buy.
  4. Investing News

    What You Can Learn from Carl Icahn's Mistakes

    Carl Icahn has been a stellar performer in the investment world for decades, but following his lead these days could be dangerous.
  5. Mutual Funds & ETFs

    ETFs Can Be Safe Investments, If Used Correctly

    Learn about how ETFs can be a safe investment option if you know which funds to choose, including the basics of both indexed and leveraged ETFs.
  6. Mutual Funds & ETFs

    The Top 5 Large Cap Core ETFs for 2016 (VUG, SPLV)

    Look out for these five ETFs in 2016, and learn why investors should closely watch how the Federal Reserve moves heading into the new year.
  7. Economics

    India: Why it Might Pay to Be Bullish Right Now

    Many investors are bullish on India for all the right reasons. Does it present an investing opportunity?
  8. Stock Analysis

    Analyzing Altria's Return on Equity (ROE) (MO)

    Learn about Altria Group's return on equity (ROE) and analyze net profit margin, asset turnover and financial leverage to determine what is causing its high ROE.
  9. Investing Basics

    Building My Portfolio with BlackRock ETFs and Mutual Funds (ITOT, IXUS)

    Find out how to construct the ideal investment portfolio utilizing BlackRock's tools, resources and its popular low-cost exchange-traded funds (ETFs).
  10. Investing News

    Icahn's Bet on Cheniere Energy: Should You Follow?

    Investing legend Carl Icahn continues to lose money on Cheniere Energy, but he's increasing his stake. Should you follow his lead?
RELATED FAQS
  1. Should mutual funds be subject to more regulation?

    Mutual funds, when compared to other types of pooled investments such as hedge funds, have very strict regulations. In fact, ... Read Full Answer >>
  2. Do ETFs pay capital gains?

    Exchange-traded funds (ETFs) can generate capital gains that are transferred to shareholders, typically once a year, triggering ... Read Full Answer >>
  3. How do real estate hedge funds work?

    A hedge fund is a type of investment vehicle and business structure that aggregates capital from multiple investors and invests ... Read Full Answer >>
  4. Are Vanguard ETFs commission-free?

    While some Vanguard exchange-traded funds (ETFs) are available commission-free from third-party brokers, a large portion ... Read Full Answer >>
  5. Do Vanguard ETFs require a minimum investment?

    Vanguard completely waives any U.S. dollar minimum amounts to buy its exchange-traded funds (ETFs), and the minimum ETF investment ... Read Full Answer >>
  6. Can mutual fund expense ratios be negative?

    Mutual fund expense ratios cannot be negative. An expense ratio is the sum total of all fees charged by an asset management ... Read Full Answer >>
COMPANIES IN THIS ARTICLE
Trading Center