Major U.S. indices moved largely lower over the past week with the exception of the NASDAQ 100, as of Thursday’s close. In another revision to Q1 GDP, the U.S. reported a steep 2.9% drop in annualized GDP during the first quarter. Many economists shrugged off the revision given the solid rebound since then and attributed the dramatic decline to harsh winter weather.

International markets moved largely lower over the past week, as of Thursday’s close. Japan’s Nikkei 225 fell 0.77%; Germany’s DAX 30 fell 1.83%; and Britain’s FTSE 100 fell 1.32%. In Europe, the Markit Purchasing Managers Index (PMI) fell to 52.8 in June in a sign that the recovery may be losing momentum. In Asia, Japan’s Shinzo Abe unveiled the “third arrow” of his economic plan.

The SPDR S&P 500 ETF (SPY) fell 0.25% over the past week, as of Thursday’s close. After reaching its R2 resistance at 196.35, the index fell to its R1 resistance and trend line support at 194.05 over the past week. Traders should watch for a retest of its R2 resistance on the upside or a breakdown below its R1 resistance to its pivot point and lower trend line at 189.59. Looking at technical indicators, the RSI appears overbought at 64.86 while the MACD is neutral.

The SPDR Dow Jones Industrial Average ETF (DIA) fell 0.59% over the past week, as of Thursday’s close. After falling to its lower trend line and R1 resistance at 167.98, the index has been trading sideways near those levels. Traders should watch for a breakout to its R2 resistance at 169.36 or a move below its lower trend line to its 50-day moving average at 165.82. Looking at technical indicators, the RSI and MACD both appear to be trading at relatively neutral levels.

The PowerShares QQQ ETF (QQQ) rose 0.61% over the past week, as of Thursday’s close. After breaking out from its prior highs, the index moved just above its R1 resistance at 93.08 over the past week. Traders should watch for a move higher towards its R2 resistance at 95.09 or a move back down to retest its trend line support at around 91.00. Looking at technical indicators, the RSI appears overbought at 72.43 while the MACD is stuck in a bearish downtrend.

The iShares Russell 2000 ETF (IWM) fell 0.63% over the past week, as of Thursday’s close. After crossing above its prior highs and R2 resistance at 117.78, the index moved back down a bit towards the 117.00 levels. Traders should watch for a breakout to retest its prior highs or a move down to its R1 resistance at around 115.32. Looking at technical indicators, the RSI appears modestly overbought at 61.21 while the MACD looks as if it could experience a bearish crossover.

The Bottom Line

The major U.S. indices moved largely lower over the past week as of Thursday’s close, with the notable exception of the NASDAQ. While some technical indicators are uncertain, indexes like the QQQ appear overdue for a correction. Traders will be watching a number of economic events next week, including the ISM Manufacturing Index on July 1and Employment Data on July 3.

Charts courtesy of StockCharts.com

Related Articles
  1. Chart Advisor

    ChartAdvisor for June 20 2014

    Weekly Technical Summary of the Major U.S. Indexes
  2. Investing

    Disturbing Headlines, Strong Equity Markets: Why the Disconnect?

    It’s hard not to see some disconnect between recent disturbing world news headlines and the market’s quiet advance.
  3. Chart Advisor

    ChartAdvisor for June 13 2014

    Weekly technical summary of the major U.S. indexes.
  4. Chart Advisor

    ChartAdvisor for May 30 2014

    Weekly Technical Summary of the Major U.S. Indexes.
  5. Mutual Funds & ETFs

    ETF Analysis: iShares 10-20 Year Treasury Bond

    Learn about the iShares 1-20 Year Treasury Bond ETF and its holdings, and understand why investors may be better served to look at other bond funds.
  6. Mutual Funds & ETFs

    ETF Analysis: iShares Global Telecom

    Learn about the iShares Global Telecom exchange-traded fund, which invests in U.S. and foreign telecommunication companies with high dividend yields.
  7. Chart Advisor

    Gold Struggles to Climb Higher and May Fall Soon

    Traders will be watching the price of gold over the coming weeks. We'll take a look at how a couple major moving averages are suggesting that the next move could be lower.
  8. Mutual Funds & ETFs

    ETF Analysis: United States Brent Oil Fund

    Learn more about the United States Brent Oil exchange-traded fund, the characteristics of the fund and the suitability and recommendations of it.
  9. Mutual Funds & ETFs

    ETF Analysis: ProShares Ultra Bloomberg Crude Oil

    Find out more about the ProShares Ultra Bloomberg Crude Oil ETF, the characteristics of UCO and the suitability and recommendations of UCO for investors.
  10. Active Trading Fundamentals

    The Top 5 Impact Investing Firms

    Learn what impact investing is and obtain information on some of the top impact investing firms ranked by total assets under management.
RELATED TERMS
  1. Equity

    The value of an asset less the value of all liabilities on that ...
  2. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  3. Systematic Manager

    A manager who adjusts a portfolio’s long and short-term positions ...
  4. Unconstrained Investing

    An investment style that does not require a fund or portfolio ...
  5. Open Architecture

    The option offered by an investment firm to let its clients invest ...
  6. Exchange-Traded Mutual Funds (ETMF)

    Investopedia explains the definition of exchange-traded mutual ...
RELATED FAQS
  1. Do penny stocks pay dividends?

    Because of the small market capitalization and revenues typical of most penny stocks, there are very few that offer dividends. ... Read Full Answer >>
  2. Can you buy penny stocks in an IRA?

    It is possible to trade penny stocks through an individual retirement accounts, or IRA. However, penny stocks are generally ... Read Full Answer >>
  3. Where do penny stocks trade?

    Generally, penny stocks are traded through the use of the Over the Counter Bulletin Board (OTCBB) and through pink sheets. ... Read Full Answer >>
  4. Where can I buy penny stocks?

    Some penny stocks, those using the definition of trading for less than $5 per share, are traded on regular exchanges such ... Read Full Answer >>
  5. Can my child have an IRA/Roth IRA?

    One of the best assets a person can have is an individual retirement account (IRA), and children can have one as long as ... Read Full Answer >>
  6. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!