The U.S. markets moved higher this week amid renewed optimism surrounding the economy and job market. After moving lower last week, the market rebounded following the Federal Reserve’s ongoing commitment to buy assets into the middle of this year, as well as initial U.S. unemployment claims that fell sharply to an adjusted 346,000. The market now appears less concerned about March’s hiring slowdown, which helped fuel a move higher this week.

The global markets also moved higher on the week, led by Japan’s Nikkei 225 that soared more than 5% higher. With ongoing promises of easing from the Liberal Democratic Party, the Japanese stock market reached a new four-year high at a time when the rest of the world has slowed. Similar signs of optimism were seen in Europe, where Britain’s FTSE 100 and Germany’s DAX both moved higher on the week, despite ongoing concerns in the eurozone.

The S&P 500 SPDR (NYSE:SPY) ETF moved 2.27% higher to 158.29, as of early trading on Friday morning. Currently, the index trades in a price channel with an upper bound at around 160.00 and a lower bound around 155.00. Traders may see consolidation over the near term, as the index recently hit another all-time high. Looking at technical indicators, the Relative Strength Index appears overbought at 62.47, while the MACD recently experienced what could become a bullish crossover after somewhat of a downtrend since mid-March.

SEE: Momentum And The Relative Strength Index

SPY up

The Dow Jones Industrial Average SPDR (NYSE:DIA) ETF moved 1.69% higher to 147.97, as of early trading on Friday morning. Currently, the index trades in a rising wedge pattern with an upper bound at the R2 pivot point resistance of 149.89 and a lower bound at about 146.00. As with the SPY index, traders may see some consolidation over the near term, while the chart pattern suggests a potential move downward. Looking at technical indicators, the RSI remains in overbought territory at 68.82 and the MACD may be starting a bullish crossover.

SEE: Technical Analysis: Support And Resistance

DIA up

The PowerShares QQQ (Nasdaq:QQQ) ETF moved 3.18% higher to 69.59, as of early trading on Friday morning, outperforming the other major indices. Currently, the index trades in a price channel with an upper bound at the R1 pivot point resistance of 69.89 and a lower bound of about 67.50. After a strong rebound from the lower trend line, traders should watch for a breakout of the upper trend line next week. Looking at technical indicators, the RSI appears relatively neutral at 59.42, while the MACD just experienced a bullish crossover.

QQQ up

The iShares Russell 2000 Index (NYSE:IWM) ETF moved 2.43% higher to 93.20, as of early trading on Friday morning. Currently, the index trades just above its pivot point level of 92.70 after breaking down from a key trend line in early April. Traders should watch for the pivot point level to hold or a move down to its S1 pivot point support at 90.69, with upside capped by the R1 pivot point resistance and trend line at 96.45. Technical indicators remain neutral with the RSI standing at 52.84 and the MACD stabilizing after a significant bearish downtrend.

SEE: Support & Resistance Basics

IWM up

The Bottom Line
The major U.S. indices moved larger higher this week, driven by ongoing asset purchases at the Federal Reserve and an improving employment situation. Next week, traders will be closely watching the consumer price index, housing starts and industrial production figures on April 16 and jobless claims and the Federal Reserve survey on April 18 for ongoing signs of improvement. But with markets already top heavy, traders might be wise to keep tight stops in the event of a retracement lower or profit taking in the near term.

Charts courtesy of

At the time of writing, Justin Kuepper did not own any shares in any company mentioned in this article.

Related Articles
  1. Investing

    Using Technical Analysis In The Gold Markets

    The quest for this shiny commodity has made millionaires of paupers and, on the flip side, ruined many an investor.
  2. Active Trading Fundamentals

    Finding Short Candidates With Technical Analysis

    Learn how to distinguish tops and bottoms in the equity market when short selling.
  3. Investing

    Time to Bring Active Back into a Portfolio?

    While stocks have rallied since the economic recovery in 2009, many active portfolio managers have struggled to deliver investor returns in excess.
  4. Chart Advisor

    ChartAdvisor for November 27 2015

    Weekly technical summary of the major U.S. indexes.
  5. Professionals

    The Best Financial Modeling Courses for Investment Bankers

    Obtain information, both general and comparative, about the best available financial modeling courses for individuals pursuing a career in investment banking.
  6. Investing

    Where the Price is Right for Dividends

    There are two broad schools of thought for equity income investing: The first pays the highest dividend yields and the second focuses on healthy yields.
  7. Chart Advisor

    Pay Attention To These Stock Patterns Playing Out

    The stocks are all moving different types of patterns. A breakout could signal a major price move in the trending direction, or it could reverse the trend.
  8. Chart Advisor

    Now Could Be The Time To Buy IPOs

    There has been lots of hype around the IPO market lately. We'll take a look at whether now is the time to buy.
  9. Economics

    Long-Term Investing Impact of the Paris Attacks

    We share some insights on how the recent terrorist attacks in Paris could impact the economy and markets going forward.
  10. Chart Advisor

    Copper Continues Its Descent

    Copper prices have been under pressure lately and based on these charts it doesn't seem that it will reverse any time soon.
  1. What is the difference between fast and slow stochastics in technical analysis?

    The main difference between fast and slow stochastics is summed up in one word: sensitivity. The fast stochastic is more ... Read Full Answer >>
  2. 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 >>
  3. 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 >>
  4. 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 >>
  5. 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 >>
  6. 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 >>

You May Also Like

Trading Center