The major U.S. indexes moved further into record territory over the past week, driven by strong tech earnings and a robust housing market. New home sales soared 18.9% to a 667,000 seasonally adjusted annualized rate, which is the largest gain in nearly 30 years. Third quarter gross domestic product (GDP) also came in at a higher-than-expected 3.0% compared with consensus estimates calling for just 2.5%, driven by rising inventories ahead of the hurricanes. Consumer sentiment also remains strong at 100.7 but was slightly below consensus estimates.

International markets were mixed over the past week. Japan's Nikkei 225 rose 2.58%; Germany's DAX 30 moved 1.74% higher; and Britain's FTSE 100 fell 0.17%. In Europe, the European Central Bank (ECB) took the first steps in ending its bond-buying program by reducing purchases to €30 billion per month from €60 billion per month. In Asia, Japanese Prime Minister Shinzo Abe was re-elected with a super majority that could pave the way for the so-called "third arrow" of the Abenomics policy to jumpstart the economy. (See also: Abenomics vs. Quantitative Easing: Which Works Best?)

The SPDR S&P 500 ETF (ARCA: SPY) rose 0.23% over the past week. After falling to trendline support earlier this month, the index rebounded above R2 resistance at $256.34 to new all-time highs. Traders should watch for an ongoing move to fresh all-time highs or some consolidation above trendline and R2 resistance before a further move higher. Looking at technical indicators, the relative strength index (RSI) moderated to 71.32 but remains overbought, and the moving average convergence divergence (MACD) experienced a bearish crossover that could suggest a near-term downtrend.

Technical chart showing the performance of the SPDR S&P 500 ETF (SPY)

The SPDR Dow Jones Industrial Average ETF (ARCA: DIA) rose 0.45% over the past week. After reaching all-time highs two weeks ago, the index moved slightly lower in a consolidation pattern last week. Traders should watch for ongoing consolidation above trendline resistance at $232.00 or a breakout to new all-time highs. Looking at technical indicators, the RSI remains very overbought at 79.73, but the MACD remains in a bullish uptrend dating back to late September. (For more, see: How Rising Wages Will Fire Up U.S. Stocks.)

Technical chart showing the performance of the SPDR Dow Jones Industrial Average ETF (DIA)

The PowerShares QQQ Trust (NASDAQ: QQQ) rose 1.7% over the past week, making it the best performing major index. After moving sharply lower for most of last week, the index broke out to fresh all-time highs following strong earnings across the tech sector. Traders should watch for some consolidation above trendline resistance at around $150.00 before a significant move higher. Looking at technical indicators, the RSI is nearing overbought levels at 69.73, while the MACD could see a near-term bullish crossover. (For more, see: Microsoft: Q1 Results Prompt Price Target Hikes.)

Technical chart showing the performance of the PowerShares QQQ Trust (QQQ)

The iShares Russell 2000 Index ETF (ARCA: IWM) fell 0.13% over the past week, making it the worst performing major index. After trending sideways in October, the index rebounded slightly higher over the past week. Traders should watch for a rebound from trendline resistance to R1 resistance at $151.66 or a breakdown lower to the pivot point at $144.95. Looking at technical indicators, the RSI is a bit overbought at 63.41, while the MACD remains in a robust bearish downtrend.

Technical chart showing the performance of the iShares Russell 2000 Index ETF (IWM)

The Bottom Line

The major indexes moved largely higher over the past week, although many remain overbought on a technical level. Next week, traders will be closely watching several economic indicators, including the November FOMC meeting that will conclude on Nov. 1 and the employment report that will come out on Nov. 3. The market will also be keeping a close eye on evolving political events occurring in the U.S. and around the world. (For additional reading, check out: How Will the Fed Reduce Its Balance Sheet?)

Note: Charts courtesy of StockCharts.com. As of the time of writing, the author had no holdings in the securities mentioned.

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