ChartAdvisor for April 18 2014

By Justin Kuepper | September 02, 2014 AAA

Major U.S. indices moved higher over the past week, bouncing back from the prior week’s declines. After positive jobs numbers and factory data, economists believe the economy may be in an upswing after the brutally cold winter. Retail sales and industrial production were also very positive earlier during the week, which all suggests positive momentum in place moving into the second quarter.

International markets followed U.S. indices higher over the past week. Japan’s Nikkei 225 rose 3.98%; Britain’s FTSE 100 rose 0.97%; and Germany’s DAX 30 rose 1.01%. In Europe, the economy remains stagnant in many regards, while investors worry about the Russian aggression in Ukraine. In Asia, Japan’s economic growth was cut modestly after its sales tax hike took a bit out of consumer spending.

The SPDR S&P 500 (ARCA:SPY) ETF rose 2.18% higher during the shortened trading week. After rebounding near 182.00 levels, the index moved past its S1 support and 50-day moving average to its pivot point at 186.33. Traders should watch for a move higher towards its R1 resistance at 189.71 or a move back down to its lower trend line at 182.00. Looking at technical indicators, the RSI appears neutral at 53.47 but the MACD could see a bullish crossover in the near-term.

The SPDR S&P 500 (ARCA: SPY) ETF rose 2.18% higher during the shortened trading week.

The SPDR Dow Jones Industrial Average (ARCA:DIA) ETF rose 2.20% during the shortened trading week. After falling just below its 50-day moving average and S1 support at 161.23, the index rebounded above its pivot point at 162.85. Traders should watch for a move to re-test its R1 resistance at 165.73, or a move back down to its S1 support and lower trend line at 161.23. Looking at technical indicators, the RSI appears neutral at 54.54, but the MACD could see a bullish crossover.

The SPDR Dow Jones Industrial Average (ARCA: DIA) ETF rose 2.20% during the shortened trading week.

The PowerShares QQQ (NASDAQ:QQQ) ETF rose 1.95% during the shortened trading week. After breaking below its lower trend line support and its S1 support at 85.66, the index touched S2 support at 83.66 before rebounding. Traders should watch for a breakout higher from its lower trend line at 87.00 or a move lower to re-test its S3 support at 83.66. Looking at technical indicators, the RSI is modestly oversold at 45.61 and the MACD looks like it could experience a bullish crossover.

The PowerShares QQQ (NASDAQ: QQQ) ETF rose 1.95% during the shortened trading week.

The iShares Russell 2000 (NYSE:IWM) ETF rose 1.53% during the shortened trading week. After rebounding from its lower trend line and S2 support at 110.19, the index moved up to its S1 support at 113.26. Traders should watch for an ongoing rebound towards its 50-day moving average at 115.49 or pivot point at 116.77. Looking at technical indicators, the RSI appears oversold at 44.61, although the MACD remains in a bearish downtrend.

The iShares Russell 2000 (NYSE: IWM) ETF rose 1.53% during the shortened trading week.

Summary

The major U.S. indices moved higher over the past week, although RSI indicators suggest a bit of indecisiveness in terms of future direction. Next week, traders will be watching a number of key economic indicators for insights into future direction, including existing home sales on April 22nd, new home sales on April 23rd, and jobless claims/durable goods orders on April 24th.

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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