The major U.S. indices moved mostly lower this week with the exception of the NASDAQ’s 0.21% gain, as of midday trading on Friday afternoon. Early this week, ISM Non-Manufacturing data came in lower than expected while many analysts predicted a weak holiday season. More favorable data towards the end of the week, including better than expected consumer sentiment and GDP growth, helped return many of the indices higher on Friday morning.

International markets moved largely lower surpassing U.S. market declines. Japan’s Nikkei 225 fell 2.31%; Britain’s FTSE 100 fell 1.56%; and, Germany’s DAX 30 fell 2.43%. In the eurozone, ECB President Mario Draghi spooked the markets by saying that financial market dynamics and low domestic demand may hurt the region’s economy. In Asia, Japan’s Prime Minister Shinzo Abe approved a $182 billion economic package but some analysts remain skeptical.

The SPDR S&P 500 (ARCA:SPY) ETF fell 0.25% as of midday trading on Friday afternoon. After falling lower during the beginning of the week, the index rebounded from its 179.17 pivot point and trades just below R1 resistance. Traders should watch for a move higher to R1 resistance at 183.58 or a move lower to the pivot point or S1 support at 176.59. Looking at technical indicators, the RSI is only slightly overbought at 61.65 while the MACD experienced a bearish crossover that could indicate a downward bias next week.

The SPDR Dow Jones Industrial Average (ARCA:DIA) ETF fell 0.69% as of midday trading on Friday afternoon. After falling to trend line support at around 158.00, the index rebounded past its 158.96 pivot point and moved towards R1 resistance. Traders should watch for a move higher to R1 resistance at 163.34 or a move back down to trend line support at 158.00. Looking at technical indicators, the RSI is neutral with a reading of 59.20 but the MACD experienced a bearish crossover that signals a downward bias moving into next week.

The PowerShares QQQ (NASDAQ:QQQ) ETF rose 0.21% as of midday trading on Friday afternoon. After moving slightly lower earlier this week, the index extended its move higher towards its upper trend line and R1 resistance at around 87.26. Traders should watch for a breakout from this upper resistance or a rebound lower within the channel to its 84.31 pivot point. Looking at technical indicators, the RSI appears highly overbought with a 71.77 reading while the MACD’s uptrend appears to be waning, setting the stage for a move lower next week.

The iShares Russell 2000 (NYSE:IWM) ETF fell 0.79% as of midday trading on Friday afternoon. After moving lower this week to reach its pivot point at 111.60, the index rebounded towards the end of the week back towards its upper trend line resistance. Traders should watch for a move to this upper resistance at around 115.00 or R1 resistance at 116.07 or a move lower to its pivot point or lower trend line and 50-day moving average of 109.53. Looking at technical indicators, the RSI and MACD are both relatively neutral providing few insights for next week.

Summary

The major U.S. indices moved largely lower this week but ended on a high note following positive economic news. RSI levels have come off of their overbought levels, with the exception of the NASDAQ, but bearish biases remain in the MACD readings. Next week, traders will be watching Retail Sales and Jobless Claims on December 12th and Producer Price Index data on December 13th, as well as any additional insights from the U.S. Federal Reserve.

Charts courtesy of StockCharts.com.

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