Tickers in this Article: SPY, QQQ, IWM, DIA
The United States markets moved higher this week, despite Hurricane Sandy's impact on New York. Major stock exchanges shut down for the early part of the week, resulting in thin trading on the physical exchanges, while many traders were left without power and others simply took the week off. But, last week's corporate earnings sell-off seems to have halted for the time being, even though many economic indicators this week came in worse than expected.

Global markets have been roughly on par with U.S. markets this week. Britain's FTSE 100 jumped from $5,780 to around $5,860 this week, while Germany's DAX improved from $7,200 to around $7,350 over the same time. However, the eurozone continues to struggle with a record high unemployment rate of 11.6% that came in above expectations, while some manufacturing indicators also suggested a prolonged slowdown for the region.

The S&P 500's SPDR (ARCA:SPY) ETF moved higher this week, reaching back up to a $143.41 50-day moving average that was broken in late October. Since the move occurred on low volume due to Hurricane Sandy, traders will be watching closely to see if the index can break through the key moving average next week and reverse the downward trend. Meanwhile, the moving average convergence divergence (MACD) could also see a bullish crossover, if the index moves higher next week, paving the way for a potential move to a 52-week high at around $146.

SEE: A Primer On The MACD

The Dow Jones Industrial Average SPDR (ARCA:DIA) ETF moved higher this week and, like the SPY ETF, reached towards its 50-day moving average at $132.98, which was breached in mid-October. Since the move occurred on low volume due to the storm, traders will be watching to see if the index breaks through the key moving average in a more sustained move higher before initiating any bullish positions. Meanwhile, the MACD indicator remains at a low and could see a bullish crossover as well, if the index moves higher next week, suggesting what could become the beginning of a more sustained move higher.

SEE: Trading The MACD Divergence



The PowerShares QQQ (Nasdaq:QQQ) ETF rebounded off of its 200-day moving average priced at around $64.99, but investors will watch to see if the move is sustainable next week, since this week's trading occurred on low volumes due to the storm. For now, traders will be looking for the index to remain priced between the 50-day moving average on the upside at around $67.97 and the 200-day moving average on the downside at around $64.99. Meanwhile, the MACD looks like it may be about to see a bullish crossover, signaling a possible move up.



The iShares Russell 2000 Index (ARCA:IWM) ETF moved higher this week, alongside the other major U.S. indexes, rebounding off of its lower trend line at around $81.00 on heavy buying volume. The index is now trying to break out above a key 50-day moving average at around $82.93 before making a more sustained move higher. Meanwhile, the MACD could see a bullish crossover that could signal a further move higher to the next major resistance levels at prior highs at around $86 or the upper channel trendline.

SEE: Interpreting Support And Resistance Zones



The Bottom Line
The major U.S. indexes continued to push up against resistance levels this week after the prior week's move down due to poor corporate earnings. While traders will keep an eye on economic news out next week, the little volume that happened this week on the major indexes suggests that the mini recovery will be taken with a grain of salt. Next week's trading may continue to be on the lighter side, but should provide traders with a clearer view of what's ahead.

In particular, traders will be watching for the ISM Services Index on November 5, U.S. Jobless Claims on November 8 and the U.S. Consumer Sentiment on November 9 to guide trading.

At the time of writing, Justin Kuepper did not own any shares in any company mentioned in this article.

Charts courtesy of StockCharts.com.

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