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.

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