Tickers in this Article: SPY, DIA, QQQ, IWM
The stock market in the United States managed to post marginal gains for the week, as of 10:30am EST Friday, led by the Nasdaq (+0.56%) and lagged by the Dow Jones Industrial Average (+0.13%). While the U.S. recently slid into a surprising quarterly decline, investors shrugged off the data as temporary, noting a jump in factory orders and ISM Non-Manufacturing data this week.

Global markets moved higher for the most part, with the German DAX, French CAC and Chinese Xinhua 25 all moving higher on the week. Japan's Nikkei was the notable exception, taking a breather this week after moving sharply higher over the past couple months, due to comments from the country's Finance Minister suggesting the yen fell "too far" over the past months.

The SPDR S&P 500 (ARCA:SPY) ETF moved up 0.28% this week, reaching another 52-week high, despite mixed economic data. Currently, the index is trading just below its 152.18 pivot point and above major support at 145.97 - two important levels that traders should watch closely over the coming week. Technical indicators suggest that the index may be due for a retracement between these levels, with an overbought relative strength index (RSI) at 67.81 and a moving average convergence divergence (MACD) that could show a bearish crossover over the near term. However, a breakout from the 152.18 level could set the stage for a move to the next pivot point resistance level at 154.67.

SEE: A Primer On The MACD

SPY ETF moved up 0.28% this week, reaching another 52-week high, despite mixed economic data.

The PowerShares QQQ (Nasdaq:QQQ) ETF moved up 0.56% this week, leading the other major indexes over the same timeframe. Currently, the index trades just above its 50-day moving average at 66.16 and below its pivot point resistance at 68.56. Traders should watch for price action between these two levels over the coming week, with a breakout on the upside potentially leading to a 70 test of the 52-week high. Unlike the other major indexes, technical indicators are relatively moderated, with the MACD poised for a potential bullish crossover.

SEE: Using Pivot Points For Predictions

QQQ ETF moved up 0.56% this week, leading the other major indexes over the same timeframe.

The SPDR Dow Jones Industrial Average (ARCA:DIA) ETF moved up 0.13% this week, lagging the other major indexes, but hitting its 52-week high. Currently, the index continues to trade above its 50- and 200-day moving averages and shy of its pivot-point resistance at 141.55. Traders should watch for the index to trade between 141.55 at the upper level and approximately 135.40 at the lower level over the coming week. As with the SPY ETF, technical indicators suggest that the QQQ ETF may be overbought with a RSI of 69.28, while the MACD indicator could see a bearish crossover.

DIA ETF moved up 0.13% this week, lagging the other major indexes, but hitting its 52-week high.

The iShares Russell 2000 Index (ARCA:IWM) ETF moved up 0.2% this week, holdings its gains and reaching another 52-week high. Currently, the index trades below its pivot-point resistance at 91.19 and above a strong lower support at the 50-day moving average and prior highs at around 85.80 - two levels traders should watch moving into next week. Technical indicators are pointing towards a retracement, with the RSI at an overbought 66.30 level and the MACD already in a bearish downtrend. Notably, this comes as the index has outperformed all of the other major indexes over the past few months.

SEE: The Anatomy Of Trading Breakouts

IWM ETF moved up 0.2% this week, holdings its gains and reaching another 52-week high.

The Bottom Line
The major U.S. indexes moved higher this week, but traders should keep an eye out for retracements over the coming weeks. Looking ahead, traders will be watching jobless claims (previously 366,000) on Feb. 14 and industrial production (previously 0.3%) on Feb. 15tfor signs of improvement before counting on a continuation of the stock market rally, although most technical indicators point towards a retracement in the indexes.

Charts courtesy of stockcharts.com.

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

comments powered by Disqus
Trading Center