Major U.S. indices moved higher over the past week, as of Thursday’s close, with investors remaining optimistic. In May, the Conference Board’s index of leading indicators rose 0.5% compared to a 0.3% gain in April. The strength increased across the board with contributions from all financial and labor components of the index, suggesting even-keeled rather than lop-sided growth. A key remaining challenge will be ongoing income growth to support consumer spending.

International markets moved largely higher over the past week. Japan’s Nikkei 225 jumped 2.11% higher; Britain’s FTSE 100 rose 0.45% higher; and Germany’s DAX30 increased 0.92% higher as of Thursday’s close. In Europe, the International Monetary Fund projects growth in 2014-2015, but expects that growth to be skewed north. In Asia, China’s foreign direct investment has been falling, but the country still plans on meeting its 7.5% growth target, according to Premier Li.

The SPDR S&P 500 (ARCA:SPY) ETF rose 1.18% higher over the past week, as of Thurday’s close. After rebounding from its prior resistance trend line, the index moved higher towards its R2 resistance at 197.29. Traders should watch for a breakout higher from these levels on the upside or a rebound lower back towards R1 resistance at 194.98 on the downside. Looking at technical indicators, the RSI appears overbought at 70.61 while the MACD appears lofty but bullish.

The SPDR S&P 500 (ARCA:SPY) ETF rose 1.18% higher over the past week, as of Thurday’s close.

The SPDR Dow Jones Industrial Average (ARCA:DIA) ETF rose 0.88% higher over the past week, as of Thurday’s close. After moving lower off of its upper trend line resistance, the index recovered towards its R2 resistance at 169.69. Traders should watch for a breakout higher from these levels or a move lower back towards its lower trend line around 167.00 or so. Looking at technical indicators, the RSI appears neutral at 63.94 while the MACD has bee trading roughly even.

The SPDR Dow Jones Industrial Average (ARCA:DIA) ETF rose 0.88% higher over the past week, as of Thurday’s close.

The PowerShares QQQ (Nasdaq:QQQ) ETF rose 0.64% higher over the past week, as of Thurday’s close. After breaking out from its prior resistance trend line, the index moved towards R1 resistance at 93.33. Traders should watch for a breakout towards R2 resistance at 95.35 or a move lower to its trend line support at around 91.00 to rebase before a move higher. Looking at technical indicators, the RSI appears overbought at 67.63 and the MACD could be turning bearish.

The PowerShares QQQ (Nasdaq:QQQ) ETF rose 0.64% higher over the past week, as of Thurday’s close.

The iShares Russell 2000 (NYSE:IWM) ETF rose 1.98% higher over the past week, as of Thurday’s close. After rebounding from R1 resistance at 115.32, the index moved past its R2 resistance at around 117.78. Traders should watch for an extended move higher to trend line resistance at 120.00 or a move back to its R1 resistance to rebase before a move higher. Looking at technical indicators, the RSI appears overbought at 66.93, but the MACD remains in a bullish uptrend.

The iShares Russell 2000 (NYSE:IWM) ETF rose 1.98% higher over the past week, as of Thurday’s close.

Summary

The major U.S. indices moved largely higher over the past week, although a couple of them remain in overbought territory judging by technical indicators. Next week, traders will be watching a number of key economic events, including existing home sales on June 23rd, new home sales on June 24th, durable goods and GDP on June 25th, and personal income and jobless claims on June 26th.

Charts courtesy of StockCharts.com.

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