Tickers in this Article: SPY, DIA, QQQ, IWM
The U.S. markets reached new highs this week, with the Dow Jones surpassing the 15,000 milestone. Small-cap equities led the rally, with the Russell 2000 jumping 1.93%, while the Dow Jones Industrial average moved just 0.78% higher during the week. These gains were largely spurred by consumer spending that jumped 0.2% in March, jobless claims that fell to 323,000 last week and the Federal Reserve's ongoing commitment to cheap capital.

Global markets fared better than the United States in many cases, with Japan's Nikkei 225 rallying a full 5.2% this week and Germany's DAX improving 1.92%. Outside of Europe and Asia, the Australian ASX 200 increased 1.5% and the MSCI Brazil Index in Latin America remained roughly even. While many of these gains were made on the heels of positive U.S. economic news, progress in the eurozone has also spurred hope of a larger global recovery.

The SPDR S&P 500 (NYSE:SPY) ETF moved up 0.92% by mid-day trading on Friday afternoon, hovering near the upper end of a bullish price channel. Traders may want to watch for a retracement back to support at the R1 pivot point resistance level of 161.75 before a move higher, with the two key channel levels to watch being 157.65 on the downside and 163.82 on the upside. The RSI reading of 66.89 supports a near-term retracement, but the MACD's crossover suggests that the long-term bullish price channel remains in tact.

SEE: Retracement Or Reversal: Know The Difference



The SPDR Dow Jones Industrial Average (NYSE:DIA) ETF moved up 0.78% by mid-day trading on Friday afternoon, remaining within the middle of its long-term price channel. Hovering between its R1 and R2 pivot point resistance levels of 149.72 and 151.42, respectively, traders should watch for a breakout to upper trend line resistance at around 155.00 or a breakdown to its lower trend line support at around 146.82. Looking at the technical indicators, the RSI remains overbought at around 67.58, while the MACD still appears bullish.

SEE: Momentum And The Relative Strength Index



The PowerShares QQQ (Nasdaq:QQQ) ETF moved up 0.94% by mid-day trading on Friday afternoon, after breaking out higher from its price channel last week. Currently, the index trades right near its R2 pivot point resistance level of 73.29 and above its prior resistance-turned-support at around 72.01. Traders should watch for a retracement back down to the 72.00 level before a move higher, given an RSI reading that stands above 70.0, but then a continued move higher given the MACD reading that confirms a bullish bias over the long term.



The iShares Russell 2000 Index (NYSE:IWM) ETF moved up 1.93% by mid-day trading on Friday afternoon, after breaking out from a long-term ascending triangle pattern. Traders should watch for a move slightly higher to its R2 pivot point resistance level of 98.05 before the index makes a retracement, with strong support at prior trend line resistance at around 95.00. Looking at the technical indicators, the RSI appears only slightly overbought and the MACD remains in a very bullish crossover dating back to late April 2013.

SEE: Technical Analysis: Support And Resistance



The Bottom Line
The major U.S. indices moved largely higher this week, but traders should watch for retracements next week, given the new highs. Next week, traders will also be watching industrial production on May 15, as well as jobless claims and housing starts on May 16 for ongoing signs of an economic recovery in the United States.

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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