Chart Advisor for May 23 2014

By Justin Kuepper | Updated September 02, 2014 AAA

Major U.S. indices moved higher over the past week, as of Thursday’s close. While the majority of U.S. citizens think the economy’s getting worse, economists would probably unanimously agree it’s getting better. The Conference Board’s index of leading economic indicators increased 0.4% in April led by improving housing and financial market conditions, although the Bloomberg Consumer Comfort Index fell to a seven-month low in May, as consumers hold the opposite view.

International markets moved largely higher over the past week, as of Thursday’s close. Britain’s FTSE 100 fell 0.51%; Japan’s Nikkei 225 rose 1.34%; and Germany’s DAX 30 rose 0.95%. In Europe, Ireland and Portugal’s return to the debt markets were bullish, but the Eurozone’s growth continues to be lackluster. In Asia, China and Japan’s factory outputs improved, but economic growth remains unstable. The market is also concerned over the instability in Ukraine and Thailand.

The SPDR S&P 500 (ARCA:SPY) ETF rose 0.79% over the past week, as of Thursday’s close. After re-testing its 50-day moving average, the index rebounded towards its upper trend line and R1 resistance at 191.57. Traders should watch for a breakout to new highs from these levels or a move lower to re-test its lower trend line, 50-day moving average, and pivot point at around 186.44. Looking at technical indicators, both RSI and MACD appear to be relatively neutral.

The SPDR S&P 500 (ARCA:SPY) ETF rose 0.79% over the past week, as of Thursday’s close.

The SPDR Dow Jones Industrial Average (ARCA:DIA) ETF rose 0.36% over the past week, as of Thursday’s close. After rebounding from its lower trend line and 50-day moving average at 163.37, the index moved towards the middle of its price channel. Traders should watch for a breakout from its upper trend line and R1 resistance at 162.24 or a break down from its lower trend line and pivot point at 163.29. Technical indicators like RSI and MACD appear relatively neutral.

The SPDR Dow Jones Industrial Average (ARCA:DIA) ETF rose 0.36% over the past week, as of Thursday’s close.

The PowerShares QQQ (Nasdaq:QQQ) ETF rose 1.73% over the past week, as of Thursday’s close. After rebounding from its pivot point, the index rose past trend line resistance towards its R1 resistance at 90.29. Traders should watch for a breakout from the R1 resistance on the upside or a move back down to its pivot point at 86.78 on the downside. Looking at technical indicators, the RSI appears a bit on the overbought side while the MACD remains bullish.

The PowerShares QQQ (NASDAQ:QQQ) ETF rose 1.73% over the past week, as of Thursday’s close.

The iShares Russell 2000 (NYSE:IWM) ETF rose 1.10% over the past week, as of Thursday’s close. After rebounding from its lower trend line at around 109.00, the index moved marginally higher towards its 200-day moving average at 110.54. Traders should watch for a move up to its pivot point and 50-day moving average at 113.37 or a breakdown below its S1 support at 107.60. Looking at technical indicators, the RSI is neutral and the MACD remains quite depressed.

The iShares Russell 2000 (NYSE:IWM) ETF rose 1.10% over the past week, as of Thursday’s close.

Summary

The major U.S. indices moved higher over the past week, as of Thursday’s close, but technical indicators don’t provide many clues as to where they’re headed. Next week, traders will be looking at a number of economic reports to provide some insights, including durable goods on May 27th, GDP and jobless claims on May 29th, and personal incomes and outlays on May 30th

Charts courtesy of StockCharts.com.

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