The major U.S. indices were mixed this week as modest improvements in employment numbers struggled to offset stagnant wages and a slightly higher unemployment rate. The nation's May jobs report showed 175,000 new jobs, but average earnings for private sector workers rose less than a penny to $23.89 per hour. Other economic indicators were generally positive, with consumer confidence increasing from 69.0 in April to 76.2 in May and U.S. home prices jumping 11% year over year in their biggest 12-month gains since April 2006.

International indices also moved largely lower this week, driven by further weakness in Japan's stock market. The Japanese Nikkei 225 extended its downturn by 6.5%, Britain's FTSE 100 fell 2.6% and Germany's DAX 30 fell 1.1% during the week. Some of this weakness has been driven by the European Central Bank (ECB), which cut its growth forecast for the eurozone to -0.6% this year and +1.1% next year, compared to a prior estimate of -0.5% last quarter. However, Mr. Draghi noted that the ECB stood ready to take further action, if necessary.

The SPDR S&P 500 (NYSE:SPY) ETF rose 0.52% this week, as of mid-day trading on Friday afternoon. After rebounding from the 50-day moving average and lower trend line at 160.77, the index moved just above its pivot point of 163.54 this week. Traders should watch for a breakout or breakdown from the aforementioned 160.77 support and an upper trend line and R1 pivot point resistance level at 168.98. Looking at technical indicators, the RSI has moderated with a reading of just 53.65 but the MACD remains in a bearish downtrend.

SEE: The Anatomy Of Trading Breakouts

The SPDR Dow Jones Industrial Average (NYSE:DIA) ETF rose 0.57% this week, as of mid-day trading on Friday afternoon. After testing the lower trend line and 50-day moving average at 148.90, the index jumped past the pivot point at 150.80 this week. Traders should watch for a breakout move toward the upper trend line at 157.50 or a move lower to retest the 50-day moving average at 148.80. Looking at technical indicators, the RSI has moderated to 54.27, while the MACD remains in a decidedly bearish downtrend.

SEE: Momentum And The Relative Strength Index

The PowerShares QQQ (Nasdaq:QQQ) ETF fell 0.16% this week, as of mid-day trading on Friday afternoon. After a bearish downtrend, the index rebounded from a prior upper trend line at 72.00 to just above the pivot point of 72.82. Traders should watch for this rebound to continue toward the R1 pivot point resistance level of 75.38 or a re-test of the 72.00 level with possible downside to the 50-day moving average at 71.20 or lower trend line at 69.00. Looking at technical indicators, the RSI has moderated but the MCAD remains in a bearish downtrend.

The iShares Russell 2000 Index (NYSE:IWM) ETF rose 0.34% this week, as of mid-day trading on Friday afternoon. After rebounding from a 96.65 pivot point, the index remains between its upper trend line and R1 pivot point resistance at 101.53 and a lower trend line support at the S1 pivot point of 92.91. Looking at technical indicators, the RSI has moderated to 55.08 but the MACD remains in a bearish downward trend.

SEE: Interpreting Support And Resistance Zones

The Bottom Line
The major U.S. indices were mixed this week, as the threat of an end to QE programs has capped upside and mixed economic readings have encouraged volatility. Next week, traders will be watching several economic indicators, including jobless claims and retail sales on June 13 and the producer price index and industrial production on June 14.

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. Forex Education

    Technical Analysis Works In Forex Markets

    Technical analysis is a hotly debated topic. Discover evidence showing that it works in forex markets.
  2. Trading Strategies

    Introduction To Technical Analysis Price Patterns

    To "find your game" in technical analysis, you need to be able to recognize reversals and continuations as they form.
  3. Active Trading Fundamentals

    Finding Short Candidates With Technical Analysis

    Learn how to distinguish tops and bottoms in the equity market when short selling.
  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. Stock Analysis

    Allstate: How Being Boring Earns it Billions (ALL)

    A summary of what Allstate Insurance sells and whom it sells it to including recent mergers and acquisitions that have helped boost its bottom line.
  10. 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.
  1. 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 >>
  2. 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 >>
  3. 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 >>
  4. 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 >>
  5. 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 >>
  6. Can mutual fund expense ratios be negative?

    Mutual fund expense ratios cannot be negative. An expense ratio is the sum total of all fees charged by an asset management ... Read Full Answer >>

You May Also Like

Trading Center