Major U.S. indices moved lower over the past week, as of Thursday’s close, amid concerns related to the U.S. Federal Reserve. The number of U.S. citizens filing for unemployment benefits fell sharply last week to a 7-year low, according to the Labor Department, suggesting that the market will see tapering ahead. New rules governing bank funding requirements also threaten to hurt lending and could lead to a higher cost of capital for many publicly traded companies.

International markets moved largely lower over the past week, as of Thursday’s U.S. close. Japan’s Nikkei 225 fell 3.93%; Britain’s FTSE 100 fell 0.8%; and, Germany’s DAX 30 fell 2.49%. In Asia, China’s economy continued to lose steam in the first quarter with no stimulus planned while Japan’s growth forecasts were revised lower as some “Abenomics” reforms stalled. In Europe, ECB leaders projected that the Eurozone economy would continue to see slack until 2017.

The SPDR S&P 500 (ARCA:SPY) ETF fell 1.19% over the past week, as of Thursday’s close. After briefly rebounding from its 50-day moving average, the index dropped back below it towards its lower trend line and S1 support at 180.24. Traders should watch for a rebound from the 50-day moving average or a move down to the lower trend line over the coming weeks. Looking at technical indicators, the RSI appears oversold at 43.19 but the MACD remains in a bearish downtrend.

The SPDR S&P 500 (ARCA:SPY) ETF fell 1.19% over the past week, as of Thursday’s close.

The SPDR Dow Jones Industrial Average (ARCA:DIA) ETF fell 1.09% over the past week, as of Thursday’s close. After briefly moving past its pivot point, the index fell back down to its 50-day moving average and S1 support at around 161.17. Traders should watch for a rebound from these levels or a breakdown towards its S2 support at 158.48. Looking at technical indicators, the RSI appears oversold at 45.01 while the MACD appears slightly bearish after a recent crossover.

The SPDR Dow Jones Industrial Average (ARCA:DIA) ETF fell 1.09% over the past week, as of Thursday’s close.

The PowerShares QQQ (Nasdaq:QQQ) ETF fell 1.03% over the past week, as of Thursday’s close. After briefly rebounding from its lower trend line, the index broke down in a big way over the past week. Traders should watch for a rebound from S1 support at 85.66 or a move lower to S2 support at 83.66. Looking at technical indicators, the RSI appears oversold at 38.33 but the MACD remains in a very bearish down trend that surpassed its February 2014 drop.

The PowerShares QQQ (Nasdaq:QQQ) ETF fell 1.03% over the past week, as of Thursday’s close.

The iShares Russell 2000 (NYSE:IWM) ETF fell 2.04% over the past week, as of Thursday’s close. After briefly bouncing from its lower trend line, the index fell below it during Thursday’s trading. Traders should watch for a rebound from these levels or a drop down to its S2 support at 110.19. Looking at technical indicators, the RSI appears oversold at 38.33 but the MACD remains in a bearish downtrend that's comparable in many ways to the decline in the Nasdaq index.

The iShares Russell 2000 (NYSE:IWM) ETF fell 2.04% over the past week, as of Thursday’s close.

Summary

The major U.S. indices moved lower over the past week, as of Thursday’s close, in a volatile session. Many of the indices appear to be at least modestly oversold, but MACD trends suggest further downside ahead. Traders will be watching a number of key economic indicators in the coming week, including retail sales data on April 14th, consumer price index data on April 15th, housing and industrial production data on April 16th, and jobs data on April 17th. Of course, traders will also be eyeing additional comments from the U.S. Federal Reserve.

Charts courtesy of StockCharts.com.

Disclosure - At the time of writing, the author did not own shares of any company mentioned in this article.

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