Tickers in this Article: SPY, DIA, QQQ, IWM
The major U.S. indices moved higher this week, led by technology stocks on the Nasdaq and lagged by the DJIA. After growing a less-than-expected 2.5% during the first quarter, many investors were just happy that there wasn’t a repeat of the fourth quarter’s unexpected 0.4% growth rate and a return to normalization. Meanwhile, consumer spending has remained robust despite the payroll tax holiday and the ongoing sequestration.

Foreign markets also experienced a relatively bullish week, led by Japan’s Nikkei 225 and Germany’s DAX indices, which both rose more than 4%. In Europe, Britain’s FTSE 100 jumped over 1.8% extending its move higher over recent weeks. And in Asia, the FTSE/Xinhua China 25 index rose just over 2.5%, as the Chinese economy undergoes a major transition. Japan continues to be the most interesting market for traders given the volatility due to BOJ comments.

The SPDR S&P 500 (NYSE:SPY) ETF rose 1.42% this week, as of early trading on Friday morning. Currently, the index remains just below its R1 pivot point resistance level of 159.10, after rebounding from its 50-day moving average and trend line support at 154.77. Traders should watch for a breakout of the key 160.00 level on the upside or a move back down to lower trend line support at 155.00 on the downside. Looking at the technical indicators, the RSI appears to be modestly overbought at 58.79 and the MACD could be ready for a bullish crossover.

SEE: Technical Analysis: Support And Resistance



The SPDR Dow Jones Industrial Average (NYSE:DIA) ETF rose 1.07% this week as of early trading on Friday morning. Like many of the other major indices, DIA remains just below its R1 pivot point resistance level of 147.46 and above its 50-day moving average at 143.75 and trend line support at around 146.00. Traders should watch for a breakout from the 147.50 level towards 150.00 or a potential move down to the 50-day moving average at 143.74. Technical indicators aren’t showing anything decisive, but the MACD remains in a bearish crossover.

SEE: Interpreting Support And Resistance Zones



The PowerShares QQQ (Nasdaq:QQQ) ETF rose 1.72% this week, as of early trading on Friday morning. Currently, the index trades just below its R1 pivot point resistance level of 69.89, after recovering from a false breakdown from its 50-day moving average and lower trend line at 68.00. Traders should watch for a breakout above the key 70.00 level or a move back down to the 50-day moving average and lower trend line that’s now at 68.33. Both the RSI and MACD are trending sideways, providing very little insight for traders seeking market direction.



The iShares Russell 2000 Index (NYSE:IWM) ETF rose 1.62% this week, as of early trading on Friday morning. Currently, the index trades just above its 50-day moving average of 92.26 after a false breakdown under its S1 pivot point support at 90.69 and rests on its pivot point level of around 92.70. Traders should watch for a move either to the R1 pivot point resistance at 96.45 or S1 pivot point support at 90.69. While technical indicators provide few clues, the MACD recently experienced a bullish crossover that could be a positive sign of things to come.

SEE: Support & Resistance Basics



The Bottom Line
The major U.S. indices moved higher this week, but many of their fates remain uncertain. Traders will be closely watching a number of economic indicators next week for hints of future market direction, including the ISM Manufacturing Index and FOMC minutes on May 1, Jobless Claims on May 2, and Employment Situation data on May 3. Of course, any modifications to the sequester could also have a favorable or unfavorable impact on this event-driven market.

Charts courtesy of stockcharts.com

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

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