The major U.S. indices moved higher during the holiday week, with the Russell 2000 leading the pack and the S&P 500 posting the slowest gains. Vehicle sales posted their strongest month in more than five years in June, home prices raised the most in seven years in May, and factories recorded their second straight month of gains in May, signaling that the U.S. economic growth continues to be on the rise, despite some concerns caused by the Fed and regulators.

International indices were largely mixed last week, with the Japanese Nikkei 225 rising 4.63% and the German DAX 30 falling 1.93% for the week. The biggest story of the week was Britain’s FTSE 100 that jumped 2.58% in its best week since January. Incoming governor Mark Carney made a strong impression during his first week after indicating that there would be no rise in interest rates during the foreseeable future, helping allay such concerns.

The SPDR S&P 500 (ARCA: SPY) ETF rose 1.63% last week, after rebounding from its 160.42 pivot point to reach the middle of a barely-in-tact price channel. Traders should watch for a move beyond the R1 pivot point resistance to test the upper trend line at 168.00 or a move down past the pivot point and lower trend line level at around 160.00 on the downside. Looking at technical indicators, the MACD may have crossed over on low volume and the RSI appears to be hovering around neutral levels with a reading of about 56.71.



The PowerShares QQQ (NASDAQ: QQQ) ETF rose 1.84% last week, extending its rise to test upper trend line resistance at about 73.00. Traders should watch for a breakout of this level to re-test near-term highs of just under 75.00 or a retracement back down to the 71.34 pivot point level or the lower trend line at around 70.00. Looking at technical indicators, the MACD appears to have crossed over – albeit on low volume – and the RSI remains in neutral territory with a reading of around 55.23 by the end of the week.

SEE: A Primer On The MACD



The SPDR Dow Jones Industrial Average (ARCA: DIA) ETF rose 1.65% last week, rebounding from a 148.92 pivot point and making a move towards key 155.00 resistance levels. Traders should watch for a re-testing of these levels or a drop back down to prior highs around 148.00 or even the lower S1 pivot point support at 144.80. Looking at technical indicators, the MACD appears to have crossed over in a bullish fashion – albeit on low volume – while the RSI remains at neutral levels with a reading of about 56.87 by the end of the week.



The iShares Russell 2000 Index (ARCA: IWM) ETF rose 2.75% last week, rebounding from a key lower trend line, 50-day moving average at 96.79, and pivot point level of 96.45. Traders should watch for a move higher towards the R2 pivot point resistance and upper trend line at 102.40 or a move back down to the 50-day moving average or lower trend line at 95.00. Looking at technical indicators, the MACD recently experienced a bullish crossover, while the RSI appears to be modestly overbought with a reading of 60.15 by week’s end.



The Bottom Line
The major U.S. indices moved higher last week, with many of them experiencing a bullish crossover in the MACD with only modest RSI readings. Looking ahead to next week, traders will be watching a number of key economic reports for an idea of future price direction, including FOMC minutes on July 10, jobless claims on July 11, and the producer price index figures on July 12, but especially Monday’s employment report that should provide key insights.

Charts courtesy of StockCharts.com 

Related Articles
  1. Chart Advisor

    Stocks With Bullish MACD Crossovers

    One of the most popular trading indicators is the MACD, and right now it's flashing a bullish signal in these four stocks.
  2. Forex Strategies

    Trading Forex Trends With MACD And Moving Averages

    Although based on short-term trading, keeping the long-term picture in mind will help investors trade with the trend.
  3. Personal Finance

    A Day in the Life of an Equity Research Analyst

    What does an equity research analyst do on an everyday basis?
  4. Mutual Funds & ETFs

    ETF Analysis: ProShares UltraPro Nasdaq Biotech

    Obtain information about an ETF offerings that provides leveraged exposure to the biotechnology industry, the ProShares UltraPro Nasdaq Biotech Fund.
  5. Mutual Funds & ETFs

    ETF Analysis: iShares MSCI Europe Financials

    Learn about the iShares MSCI Europe Financials fund, which invests in numerous European financial industries, such as banks, insurance and real estate.
  6. Mutual Funds & ETFs

    ETF Analysis: SPDR S&P Insurance

    Learn about the SPDR S&P Insurance exchange-traded fund, which follows the S&P Insurance Select Industry Index by investing in equities of U.S. insurers.
  7. Mutual Funds & ETFs

    ETF Analysis: SPDR S&P Emerging Markets Small Cap

    Learn about the SPDR S&P Emerging Markets Small Cap exchange-traded fund, which invests in small-cap firms traded at the emerging equity markets.
  8. Mutual Funds & ETFs

    ETF Analysis: ETFS Physical Platinum

    Learn about the physical platinum ETF. Platinum embarked on a bull market from 2001 to 2011, climbing to record prices along with other precious metals.
  9. Mutual Funds & ETFs

    ETF Analysis: iShares MSCI Turkey

    Learn about the iShares MSCI Turkey exchange-traded fund, which invests in a wide variety of companies' equities traded on Turkish exchanges.
  10. Mutual Funds & ETFs

    ETF Analysis: PowerShares S&P 500 Downside Hedged

    Find out about the PowerShares S&P 500 Downside Hedged ETF, and learn detailed information about characteristics, suitability and recommendations of it.
RELATED TERMS
  1. Moving Average Convergence Divergence ...

    A trend-following momentum indicator that shows the relationship ...
  2. Equity

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

    A security that tracks an index, a commodity or a basket of assets ...
  4. Exchange-Traded Mutual Funds (ETMF)

    Investopedia explains the definition of exchange-traded mutual ...
  5. Indicator

    Indicators are statistics used to measure current conditions ...
  6. Intraday Momentum Index (IMI)

    A technical indicator that combines aspects of candlestick analysis ...
RELATED FAQS
  1. 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 >>
  2. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  3. What does a high turnover ratio signify for an investment fund?

    If an investment fund has a high turnover ratio, it indicates it replaces most or all of its holdings over a one-year period. ... Read Full Answer >>
  4. Does index trading increase market vulnerability?

    The rise of index trading may increase the overall vulnerability of the stock market due to increased correlations between ... Read Full Answer >>
  5. How does additional paid in capital affect retained earnings?

    Both additional paid-in capital and retained earnings are entries under the shareholders' equity section of a company's balance ... Read Full Answer >>
  6. What types of capital are not considered share capital?

    The money a business uses to fund operations or growth is called capital, and there are a number of capital sources available. ... 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!