The U.S. markets ended the week on a positive note, after a better-than-expected jobs report helped offset losses earlier in the week. According to the Department of Labor, the U.S. added approximately 204,000 jobs in October, despite the government shutdown. The growth isn't necessarily welcome news for the equity markets, however, as the 2.8% GDP growth seen in the third quarter could lead the Federal Reserve to taper earlier than expected.
International markets were also relatively mixed this week. Japan's Nikkei 225 fell 0.1%, Germany's DAX 30 rose 0.78%, and Britain's FTSE fell 0.39%. In the eurozone, Standard and Poor's downgrade of France spelled out just how little the country was doing to combat persistent unemployment and high public spending. And in Asia, all eyes are on China's leaders, who will meet over the weekend and into early next week to discuss potential reforms.
The S&P 500 SPDR ETF Trust (ARCA:SPY) jumped 0.22% so far this week, as of mid-day trading on Friday afternoon. After breaking above trend line resistance, the index remains just above the new support level between its 172.61 pivot point and 180.69 R1 resistance. Traders should watch for a move to either of these levels over the coming week. Looking at technical indicators, the RSI appears relatively neutral at 60.46, while the MACD may have just experienced a bearish crossover, suggesting downside pressure ahead.
The Dow Jones Industrial Average SPDR ETF (ARCA:DIA) jumped 0.55% so far this week, as of mid-day trading on Friday afternoon. After rebounding lower from upper trend line resistance at around 158.00, the index has stabilized between its pivot point at 152.99 and its R1 resistance at 159.17. Traders should watch for a breakout from the upper trend line or a move lower to test the pivot point. Looking at technical indicators, RSI remains relatively neutral with a reading of 61.62, but the MACD appears ready for a bearish crossover over the near-term.
The PowerShares QQQ Trust ETF (NASDAQ:QQQ) fell 0.45% so far this week, as of mid-day trading on Friday afternoon. After rebounding lower from its upper trend line resistance at around 84.00, the index extended its move towards the center of its price channel. Traders should watch for a breakdown to the lower trend line at around 80.00 or a rebound from the pivot point to re-test the upper trend line. Looking at technical indicators, the RSI appears relatively neutral with a reading of 58.65, but the MACD has experienced a bearish crossover suggesting downside.
The iShares Russell 2000 Index ETF (ARCA:IWM) jumped 0.63% so far this week, as of mid-day trading on Friday afternoon. After rebounding from its lower trend line support and 50-day moving average at around 107.00, the index has moved higher to re-test its upper trend line and R2 resistance at around 112.87. Traders should watch for a break of either of these levels over the coming week. Looking at technical indicators, the RSI appears neutral with a 52.96 reading, but the MACD's bearish crossover could suggest further downside ahead.
The major U.S. indices moved higher this week, with the exception of the PowerShares QQQ Trust ETF, although many of them remain in a bearish downtrend judging by their MACD indicators. Next week, traders will be watching a number of key economic reports for insights, including jobless claims on the 14th and industrial production on the 15th. Additionally, traders will be carefully watching economic growth figures for clues as to Federal Reserve actions.
Charts courtesy of StockCharts.com.