The major U.S. indexes generally moved higher over the past week, led by tech stocks on the Nasdaq 100, with small-cap stocks on the Russell 2000 lagging. On Wednesday, the FOMC decided to keep interest rates steady at a range of 100 to 125 basis points but reiterated plans to hike rates by year end. On Friday, nonfarm payrolls came in slightly lower than expected at 261,000 with lackluster average hourly earnings growth, but last month's reading was revised from 33,000 jobs lost to 18,000 jobs gained.

International markets markets followed U.S. markets higher over the past week. Japan's Nikkei 225 rose 2.27%; Germany's DAX 30 rose 1.98%; and Britain's FTSE 100 rose 0.74%. In Europe, the Bank of England will hike interest rates for the first time in ten years, while Eurozone inflation came in modestly lower than expected at 1.4% last month. In Asia, Japanese Prime Minister Shinzo Abe is positioned to increase the sales tax in 2019 to help cover rising debt, even though the last increase sparked a recession back in 2014. (See also: The Fundamentals of Abenomics.)

Of the index-tracking exchange-traded funds, the SPDR S&P 500 ETF (ARCA: SPY) rose 0.28% over the past week. After breaking out from upper trendline resistance in early October, the index continued to trend higher above these support levels throughout last month. Traders should watch for an ongoing move to R1 resistance at $259.60 or a move lower to retest trendline support at $256.00. Looking at technical indicators, the relative strength index (RSI) moderated to 70.66 but remains overbought, but the moving average convergence divergence (MACD) could see a bullish crossover in the near term if prices move higher.

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

The SPDR Dow Jones Industrial Average ETF (ARCA: DIA) rose 0.43% over the past week. After breaking out from upper trendline resistance in mid-October, the index continued to reach new highs over the course of last month. Traders should watch for a move higher to R1 resistance at $237.61 or a move to retest trendline support at $232.50. Looking at technical indicators, the RSI remains extremely overbought at 77.95, and the MACD could see a bearish crossover in the near term if prices move lower. (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 1.34% over the past week, making it the best performing major index. After breaking out from upper trendline resistance late last month, the index moved closer to R1 resistance at $154.70. Traders should watch for a breakout to R1 resistance levels or a move lower to retest trendline support at $151.00. Looking at technical indicators, the RSI remains overbought at 74.13, but the MACD experienced a bullish crossover back in late October.

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

The iShares Russell 2000 Index ETF (ARCA: IWM) fell 0.79% over the past week, making it the worst performing major index. After breaking down from trendline support in mid-October, the index has steadily moved lower below its pivot point at $149.05. Traders should watch for a breakdown to S1 support at $147.43 or a rebound to retest trendline or R1 resistance at $150.89. Looking at technical indicators, the RSI appears moderate at 53.38, but the MACD remains in a bearish downtrend that began in mid-October. (See also: Small-Cap ETFs: Better Late Than Never?)

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

The Bottom Line

The major indexes moved higher over the past week, but several major indexes remain in overbought territory on a technical level. Next week, traders will be closely watching many economic indicators, including jobless claims on Nov. 9 and consumer sentiment on Nov. 10. The market will also be keeping a close eye on the evolving political situation in the United States. (For additional reading, check out: Economic Indicators to Know.)

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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