ChartAdvisor for September 28, 2014

Tickers in this Article: SPY, DIA, QQQ, IWM

Major U.S. indices moved lower over the past week as of Thursday’s close, led by small-cap stocks in the Russell 2000. The U.S. economy grew at a 4.6% rate during the second quarter, according to the Bureau of Economic Analysis, which is up from 2.5% growth during the same period last year and revised up from a previous estimate of 4.2% in August. Despite these gains, the markets have been a bit wobbly due to lackluster earnings at Apple Inc. (AAPL) and valuation concerns. (For related reading, see: Economic Indicators: An Overview.)

International markets followed U.S. markets lower, as of early trading on Friday morning in the U.S. Japan’s Nikkei 225 fell 0.35%; Britain’s FTSE 100 fell 2.77%; and Germany’s DAX fell 2.71%. In Europe, the latest PMI data fell to 52.3 in September from 52.5 in August, suggesting that growth is slowing. In Asia, China’s new orders and export orders both increased at a healthy clip, but employment remains a concern, as it decreases at an accelerated rate. (For related reading, see: This Asian Nation’s Stocks are Up Over 20% YTD.)

SPDR S&P 500 (SPY)

The SPDR S&P 500 (SPY) ETF fell 2.18% as of Thursday’s close. After reaching new highs earlier this month, the index fell to its 50-day moving average and pivot point at around 196.44. Traders should watch for a breakdown towards its lower trendline at 195.00 or a rebound back towards its upper trendline at 202.50. Looking at technical indicators, the RSI appears modestly oversold at 41.95, while the MACD remains in a bearish downtrend above the zero line. (For more, see: Momentum Trading with Discipline.)
SEE: Profiting In Bear And Bull Markets

SPDR Dow Jones Industrial Average (DIA)

The SPDR Dow Jones Industrial Average (DIA) ETF fell 1.88% as of Thursday’s close. After reaching new highs earlier this month, the index fell near its 50-day moving average at 168.68. Traders should watch for a breakdown to its pivot point at 167.95 or a rebound higher to re-test its upper trendline and R1 resistance at 173.46. Looking at technical indicators, the RSI appears neutral at 45.94, while the MACD looks as though it could cross over into bearish territory. (For more, see: Bullish and Bearish MACD Crossovers.)
PowerShares QQQ (Nasdaq:QQQ)
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The PowerShares QQQ (QQQ) ETF fell 2.18% as of Thursday’s close. After reaching new highs earlier this month, the index fell below trendline support to its 50-day moving average at 97.62. Traders should watch for a break down to S1 support at 95.58 or a rebound higher to re-test its highs. Looking at technical indicators, the RSI appears a bit oversold at 44.05, but the MACD remains in a robust bearish downtrend that’s moving closer to the zero line. (For more, see:Bearish MACD Crossovers with a Positive Twist.)
iShares Russell 2000 (NYSE:IWM)

The iShares Russell 2000 (IWM) ETF fell 3.33% as of Thursday’s close. In a continuation of its downward trend throughout the month, the index broke down through trendline and S1 support at 111.66. Traders should watch for a breakdown to S2 support at 107.08 or a rebound higher back to its S1 support. Looking at technical indicators, the RSI appears oversold at 33.93, while the MACD remains in a bearish downtrend that recently crossed below the zero line. (For more, see: A Primer on the MACD.)
The Bottom Line
The major U.S. indices moved lower over the past week as of Thursday’s close, although many of them appear to have moved into oversold territory judging by their RSI readings. Next week, traders will be watching for a number of key economic indicators, including personal incomes on Sept. 29, ISM manufacturing data on Oct. 1, jobless claims on Oct. 2, and employment data and international trade data on Oct. 3.

Charts courtesy of StockCharts.com.
Disclosure – At the time of writing, the author did not own shares of any company mentioned in this article.

Annunci

ChartAdvisor for September 21, 2014

Tickers in this Article: SPY, DIA, QQQ, IWM

Major U.S. indices moved largely higher over the past week, as of early trading on Friday morning, led by the Dow Jones and lagged by small-caps. The Conference Board’s index of leading indicators rose 0.2% in August – the seventh straight increase – but the reading was much slower than the revised 1.1% gain in July, which caused some anxiety that the pace of the recovery may be slowing. Some polls also showed that consumers are growing more pessimistic about the recovery. (For related reading, see: Economic Indicators: An Overview.)

International markets moved largely higher despite concerns in the U.S. and parts of Europe. Japan’s Nikkei 225 soared 2.71%; Britain’s FTSE 100 jumped 0.62%; and, Germany DAX 30 rose 1.69% over the past week, as of early trading on Friday morning. In Europe, investors were concerned about the weak uptake of stimulus money and what that may mean. In Asia, Japan downgraded its economic assessment in September citing poor weather and weak U.S. shipments. (For related reading, see: This Asian Nation’s Stocks Are Up Over 20% YTD.)

SPDR Dow Jones Industrial Average (DIA)

The SPDR Dow Jones Industrial Average (DIA) ETF rose 1.68% over the past week as of early trading on Friday morning. After briefly moving lower, the index rebounded toward its R1 resistance at 173.46. Traders should watch for a breakout from these levels and its upper trend line or a move down to re-test its 50-day moving average at around 168.58. Looking at technical indicators, the RSI is overbought at 70.28, while the MACD just turned bullish. (For more, see: Bullish and Bearish MACD Crossovers.)
SEE: Profiting In Bear And Bull Markets

SPDR S&P 500 (SPY)
The SPDR S&P 500 (SPY) ETF rose 1% over the past week, as of early trading on Friday morning. After moving toward its 50-day moving average, the index rebounded back up toward its R1 resistance at 203.22. Traders should watch for a breakout from that level towards its upper trend line and R2 resistance at 206.66 or a move back down to its 50-day moving average at 196.83. Looking at technical indicators, the RSI is a bit overbought at 65.61 while the MACD is choppy. (For more, see: Momentum Trading with Discipline.)
PowerShares QQQ (Nasdaq:QQQ)
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The PowerShares QQQ (QQQ) ETF rose 0.64% over the past week, as of early trading on Friday morning. After rebounding from its lower trend line and pivot point, the index moved back toward its upper trendline. Traders should watch for a breakout from R1 resistance at 101.59 or a move back down to its lower trend line at around 97.63. Looking at technical indicators, the RSI is modestly overbought at 63.47, while the MACD technically remains in a bearish downtrend. (For more, see: Bearish MACD Crossovers with a Positive Twist.)
iShares Russell 2000 (NYSE:IWM)
The iShares Russell 2000 (IWM) ETF fell 0.15% over the past week as of early trading on Friday morning. After rebounding from its 200-day moving average at 113.94, the index edged higher toward its R1 resistance. Traders should watch for a move to R1 resistance at 119.05 or a fall back down to re-test its 200-day moving average or perhaps move even lower. Looking at technical indicators, the RSI remain neutral while the MACD is in a clear bearish downtrend. (For more, see: A Primer on the MACD.)
The Bottom Line
The major U.S. indices moved higher over the past week as of early trading on Friday afternoon, with the exception of small-cap stocks on the Russell 2000. Next week, traders will be watching a number of key economic events, including existing home sales on Sept. 22, new home sales on Sept. 24, durable goods and jobless claims on Sept. 25, and GDP data on Sept. 26. Of course, eyes will also be on the Fed and any events occurring in overseas markets.

Charts courtesy of StockCharts.com.
Disclosure – At the time of writing, the author did not own shares of any company mentioned in this article.

Chart Advisor for September 12, 2014

Tickers in this Article: SPY, DIA, QQQ, IWM

Major U.S. indices moved lower over the past week, as of late-day trading on Friday afternoon, despite signs of improvement among consumers. Retail sales rose broadly in August and consumer sentiment reached a 14-month high in September, which could help ease concerns and set the stage for robust third-quarter growth. While these improvements bode well for the economy, investors remain concerned that a European slowdown could eventually stall the U.S. recovery. (For related reading, see: Economic Indicators: An Overview.)

International markets were largely mixed over the past week. Japan’s Nikkei 225 rose 1.75%; Germany’s DAX 30 fell 0.98%; and Britain’s FTSE 100 fell 0.69%. In Europe, investors remain concerned about a slowdown even as the ECB embarked on its quantitative easing-like program. In Asia, investors are eyeing potential reforms in China’s market in order to avoid a crisis or Japanese-style prolonged slowdown in the future, which could also negatively impact global growth. (For related reading, see: This Asian Nation’s Stocks Are Up Over 20% YTD.)

SPDR S&P 500 (ARCA:SPY)

The SPDR S&P 500 (SPY) ETF fell 1.24% lower, as of late-day trading on Friday afternoon. After rising to its prior R2 resistance, the index moved lower towards its pivot point and 50-day moving average at 197.37. Traders should watch for abreakdown from these levels toward its lower trend line and S1 support at 193.90 or a rebound higher to R1 resistance at 204.17. Looking at technical indicators, the RSI appears neutral while the MACD experienced a bearish crossover. (For more, see: Bullish and Bearish MACD Crossovers.)
SEE: Profiting In Bear And Bull Markets

SPDR Dow Jones Industrial Average (ARCA:DIA)
The SPDR Dow Jones Industrial Average (DIA) ETF fell 1.02% lower, as of late-day trading on Friday afternoon. After moving off of its highs earlier this year, the index has been trending toward its 50-day moving average at 168.70. Traders should watch for a breakdown from these levels toward its S1 support at 165.36 or a move higher to its upper trend line and R1 resistance at 173.87. Looking at technical indicators, the RSI appears neutral while the MACD had a bearish crossover. (For more, see: Bearish MACD Crossovers with a Positive Twist.)
PowerShares QQQ (Nasdaq:QQQ)
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The PowerShares QQQ (QQQ) ETF fell 0.69% lower, as of late-day trading on Friday afternoon. After surpassing its prior highs earlier this year, the index began to stall near the middle of its price channel. Traders should watch for a move up toward R1 resistance at 101.83 or a move down to its lower trend line and pivot point at 97.86 before any move higher. Looking at technical indicators, the RSI appears neutral while the MACD appears ready for a bearish crossover.
iShares Russell 2000 (NYSE:IWM)
The iShares Russell 2000 (IWM) ETF fell 1.13% lower, as of late-day trading on Friday afternoon. After moving toward its R1 resistance at 119.05, the index moved lower toward its 50-day moving average at 114.66. Traders should watch for a rebound to R1 resistance or a move down to its 200-day moving average at around 113.87. Looking at technical indicators, the RSI appears relatively neutral at 49.88, while the MACD appears as if it could experience a bearish crossover. (For more, see: A Primer on the MACD.)
The Bottom Line
The major U.S. indices moved lower over the past week, as of late-day trading on Friday afternoon. Next week, traders will be watching a number of key economic events, including industrial production on Sept. 15, producer price index data on Sept. 16, consumer price index and FOMC data on Sept. 17, and employment and housing data on Sept. 18. In particular, investors will be keeping a close eye on the FOMC meeting minutes late next week. (For more, see: The Stock Cycle: What Goes Up Must Come Down.)

Charts courtesy of StockCharts.com.
Disclosure – At the time of writing, the author did not own shares of any company mentioned in this article.

Chart Advisor for August 24 2014

Tickers in this Article: SPY, DIA, QQQ, IWM

Major U.S. indices moved higher over the past week led by the Dow Jones Industrial Average as of Thursday’s close. In July, the Conference Board’s index of leading indicators rose 0.9% for the sixth straight month, signaling that the economic recovery remains on track. The biggest sources of strength were the financials, falling applications for unemployment benefits, and a rise in building permits, although economists remain concerned about the unemployment rate.

International markets also moved higher over the past week as of Thursday’s close. Japan’s Nikkei 225 rose 1.79%; Germany’s DAX 30 rose 1.91%; and Britain’s FTSE 100 rose 1.3%. German stocks rebounded as Ukrainian concerns subsided, although French manufacturing declined and job creation remains a key concern. In Asia, investors grew concerned over soft readings of manufacturing activity in both China and Japan during August. (For more, see: ChartAdvisor for Aug. 15.)

SPDR S&P 500 (ARCA:SPY)

The SPDR S&P 500 (SPY) ETF rose 1.94% over the past week, as of Thursday’s close. After rising past its R1 resistance at 197.11, the index moved closer to retest its prior highs and R2 resistance at around 201.13. Traders should watch for a breakout from these levels or a move back down to R1 resistance or the 50-day moving average at 195.87. Looking at technical indicators, the RSI appears lofty at 65.61, but the MACD remains in a bullish trend after its crossover.
SEE: Profiting In Bear And Bull Markets

SPDR Dow Jones Industrial Average (ARCA:DIA)
The SPDR Dow Jones Industrial Average (DIA) ETF rose 2.29% over the past week, as of Thursday’s close. After moving past its R1 resistance at 168.89, the index moved to retest its prior highs of around 170.50. Traders should watch for a breakout from these levels towards its upper trend line and R2 resistance at 172.78 or a move back down to R1 resistance at 168.89. Looking at technical indicators, the RSI appears overbought at 64.01, but the MACD remains in a bullish uptrend. (For more, see: A Primer On The MACD.)
PowerShares QQQ (Nasdaq:QQQ)
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The PowerShares QQQ (QQQ) ETF rose 1.54% over the past week, as of Thursday’s close. After breaking past its prior highs and R1 resistance at 97.14, the index moved towards its upper trend line and R2 resistance at 99.27. Traders should watch for a breakout from these levels to new highs or a break down to retest its R1 resistance or lower trend line support before a move up. Looking at technical indicators, the RSI appears overbought at 71.16 while the MACD remains in a bullish uptrend. (For more, see: An Introduction To The Relative Strength Index.)
iShares Russell 2000 (NYSE:IWM)
The iShares Russell 2000 (IWM) ETF rose 1.59% over the past week, as of Thursday’s close. After briefly breaking through the pivot point at 114.25, the index has treaded water around the 50-day moving average at 114.98. Traders should watch for a breakout to the R1 resistance at 117.45 or a retracement back down to its lower trend line and S1 support at 107.99. Looking at technical indicators, the RSI is relatively neutral and the MACD remains in a bullish uptrend. (For more, see: Retracement or Reversal: Know The Difference.)
The Bottom Line
Positive economic news propped up the major U.S. indices over the past week as of Thursday’s close. Next week, traders will be watching a number of key economic indicatorsincluding new home sales on Aug. 25, durable goods orders on Aug. 26, GDP and jobless claims on Aug. 28, and personal income and outlays Aug. 29. (For more, see: Leading Economic Indicators Predict Market Trends.)

Charts courtesy of StockCharts.com.

Chart Advisor for August 03 2014

Commentary

Tickers in this Article: SPY, DIA, QQQ, IWM

Major U.S. indices were mixed over the past week, as the U.S. economy showed some ongoing signs of recovery. Durable goods orders exceeded analyst estimates in June, jumping 0.7% by the Department of Commerce’s estimates, while durable goods inventories rose 0.4% and could boost second quarter growth. Core capital goods fell 1% last month, however, suggesting that business spending is on the decline. (For the previous week’s summary, see: ChartAdvisor for July 17, 2014.)

International markets were also mixed over the past week. Japan’s Nikkei 225 rose 0.99%; Germany’s DAX 30 fell 0.78%; and Britain’s FTSE 100 rose 0.55% over the past week. In Europe, leading indicators edged up to 54.0 from 52.8 in June despite an ongoing slowdown in France and worries about Ukraine. In Asia, Japanese investors worried about a slowdown in inflation that could stunt its growth.

SPDR S&P 500 (ARCA:SPY)

The SPDR S&P 500 (SPY) ETF rose 0.02% higher over the past week. After reaching new highs earlier this month, the index moved lower towards its R1 resistance at 197.80. Traders should watch for a rebound above these levels to retest its upper trend line and R2 resistance at 199.87 or a move down to its pivot point and 50-day moving average at around 194.25. Looking at technical indicators, the RSI appears neutral while the MACD is showing a bearish divergence.
SEE: Profiting In Bear And Bull Markets

SPDR Dow Jones Industrial Average (ARCA:DIA)
The SPDR Dow Jones Industrial Average (DIA) ETF moved 0.83% lower over the past week. After reaching new highs earlier this month, the index fell below its trend line support towards its R1 resistance at 169.27. Traders should watch for a retest of that key trend line support on the upside or a move lower to its pivot point and 50-day moving average at around 167.88. Looking at technical indicators, both the RSI and the MACD appear to be relatively neutral.
PowerShares QQQ (Nasdaq:QQQ)
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The PowerShares QQQ (QQQ) ETF moved 0.65% higher over the past week. After reaching new highs earlier this month, the index fell back to its R2 resistance at 96.56 after a mid-week rally higher. Traders should watch for a return to new highs on the upside or a move down to retest prior support at around 95.90 on the downside. Looking at technical indicators, the RSI appears modestly overbought at 64.43 while the MACD remains relatively neutral.
iShares Russell 2000 (NYSE:IWM)
The iShares Russell 2000 (IWM) ETF moved 0.55% lower over the past week. After being battered earlier this month, the index appears to have stabilized towards the middle of its price channel. Traders should watch for a move higher towards its upper trend line at 120.00 on the upside or a move lower towards its lower trend line at 108.00 on the downside. Looking at technical indicators, the RSI appears neutral while the MACD remains in a bearish downtrend. (For a lit of technical indicators, click here.)
The Bottom Line
The major U.S. indices were mixed over the past week after mixed economic and earnings news in the market. Next week, traders will be closely watching a number of key economic indicators including GDP and FOMC data on July 30, jobless claims on July 31, and employment data and ISM manufacturing data on Aug. 1st. Earnings will also remain in focus, especially in the still-bullish tech sector.

Charts courtesy of StockCharts.com.
Disclosure – At the time of writing, the author did not own shares of any company mentioned in this article.

Chart Advisor for June 22 2014

Tickers in this Article: SPY, DIA, QQQ, IWM

Major U.S. indices moved lower last week, as of Thursday’s close, amid concerns about Iraq’s stability and the implications for energy prices. Apart from geopolitical concerns, the U.S. economy may have contracted even more than initially thought during Q1 2014 with some analysts projecting an alarming 2% contraction. Traders were also concerned with retail sales that rose less-than-expected in May and first-time applications for unemployment benefits that rose two weeks ago.

International markets followed U.S. markets lower last week. Japan’s Nikkei 225 fell 1.49% lower; Britain’s FTSE 100 fell 0.22% lower; and Germany’s DAX 30 fell 0.49% lower, as of Thursday’s close. In Europe, the ECB’s historic interest rate cuts took effect with regulators hoping that a negative rate will spur growth. In Asia, China announced new plans to jumpstart its growth through infrastructure spending, while Japan’s economy unexpectedly picked up steam in Q1 2014.

SPDR S&P 500 (ARCA:SPY)

The SPDR S&P 500 (ARCA:SPY) ETF rose 1.18% higher over the past week, as of Thurday’s close. After rebounding from its prior resistance trend line, the index moved higher towards its R2 resistance at 197.29. Traders should watch for a breakout higher from these levels on the upside or a rebound lower back towards R1 resistance at 194.98 on the downside. Looking at technical indicators, the RSI appears overbought at 70.61 while the MACD appears lofty but bullish.
SEE: Profiting In Bear And Bull Markets

SPDR Dow Jones Industrial Average (ARCA:DIA)
The SPDR Dow Jones Industrial Average (ARCA:DIA) ETF rose 0.88% higher over the past week, as of Thurday’s close. After moving lower off of its upper trend line resistance, the index recovered towards its R2 resistance at 169.69. Traders should watch for a breakout higher from these levels or a move lower back towards its lower trend line around 167.00 or so. Looking at technical indicators, the RSI appears neutral at 63.94 while the MACD has bee trading roughly even.
PowerShares QQQ (Nasdaq:QQQ)
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The PowerShares QQQ (Nasdaq:QQQ) ETF rose 0.64% higher over the past week, as of Thurday’s close. After breaking out from its prior resistance trend line, the index moved towards R1 resistance at 93.33. Traders should watch for a breakout towards R2 resistance at 95.35 or a move lower to its trend line support at around 91.00 to rebase before a move higher. Looking at technical indicators, the RSI appears overbought at 67.63 and the MACD could be turning bearish.
iShares Russell 2000 (NYSE:IWM)
The iShares Russell 2000 (NYSE:IWM) ETF rose 1.98% higher over the past week, as of Thurday’s close. After rebounding from R1 resistance at 115.32, the index moved past its R2 resistance at around 117.78. Traders should watch for an extended move higher to trend line resistance at 120.00 or a move back to its R1 resistance to rebase before a move higher. Looking at technical indicators, the RSI appears overbought at 66.93, but the MACD remains in a bullish uptrend.
The Bottom Line
The major U.S. indices moved largely higher over the past week, although a couple of them remain in overbought territory judging by technical indicators. Next week, traders will be watching a number of key economic events, including existing home sales on June 23rd, new home sales on June 24th, durable goods and GDP on June 25th, and personal income and jobless claims on June 26th.

Charts courtesy of StockCharts.com.
Disclosure – At the time of writing, the author did not own shares of any company mentioned in this article.

Chart Advisor for June 16 2014

Tickers in this Article: SPY, DIA, QQQ, IWM

Major U.S. indices moved lower last week, as of Thursday’s close, amid concerns about Iraq’s stability and the implications for energy prices. Apart from geopolitical concerns, the U.S. economy may have contracted even more than initially thought during Q1 2014 with some analysts projecting an alarming 2% contraction. Traders were also concerned with retail sales that rose less-than-expected in May and first-time applications for unemployment benefits that rose two weeks ago.

International markets followed U.S. markets lower last week. Japan’s Nikkei 225 fell 1.49% lower; Britain’s FTSE 100 fell 0.22% lower; and Germany’s DAX 30 fell 0.49% lower, as of Thursday’s close. In Europe, the ECB’s historic interest rate cuts took effect with regulators hoping that a negative rate will spur growth. In Asia, China announced new plans to jumpstart its growth through infrastructure spending, while Japan’s economy unexpectedly picked up steam in Q1 2014.

SPDR S&P 500 (ARCA:SPY)

The SPDR S&P 500 (ARCA:SPY) ETF fell 0.96% lower as of Thursday’s close. After moving lower off its R1 resistance at 194.98, the index continued to trend downward towards its pivot point at 190.50. Traders should watch for an extended move down toward those levels or a rebound to retest its upper trend line and R1 resistance at between 194.98 and 196.00. Looking at technical indicators, the RSI moved out of overbought territory, but the MACD could reverse its trend soon.
SEE: Profiting In Bear And Bull Markets

SPDR Dow Jones Industrial Average (ARCA:DIA)
The SPDR Dow Jones Industrial Average (ARCA:DIA) ETF fell 1.08% lower, as of Thursday’s close. After moving lower off its R2 resistance at 169.69, the index moved below its R1 resistance to test its trend line support. Traders should watch for a breakdown from this trend line toward its lower trend line and pivot point at 165.64 or a rebound higher to retest its R1 and R2 resistance. Looking at technical indicators, the RSI moved off its highs, but the MACD faces downward pressure.
PowerShares QQQ (Nasdaq:QQQ)
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The PowerShares QQQ (Nasdaq:QQQ) ETF fell 0.63% lower, as of Thursday’s close. After moving lower from its R1 resistance at 93.33, the index approached its prior highs from back in early March of 2014. Traders should watch for a breakdown from these levels towards its pivot point at 89.43 or a rebound higher to retest its R1 resistance. Looking at technical indicators, the RSI remains overbought and the MACD looks as though it may experience a bearish crossover.
iShares Russell 2000 (NYSE:IWM)
The iShares Russell 2000 (NYSE:IWM) ETF fell 0.94% lower, as of Thursday’s close. After reaching its prior highs from back in late-January 2014, the index moved lower towards its R1 resistance at 115.32. Traders should watch for a breakdown from these levels toward its 50-day moving average at 112.54 or a rebound to retest the prior high trend line. Looking at technical indicators, the RSI appears relatively neutral and the MACD trend remains on the upswing.
The Bottom Line
The major U.S. indices still remain a bit top-heavy from a technical standpoint, with the exception of the Russell 2000 small-cap index. Next week, traders will be watching for a number of economic events, including industrial production on June 16th, consumer prices and housing on June 17th, FOMC data on June 18th and jobless claims on June 19th, among other things. Traders will also be closely watching energy prices follow the geopolitical instability.

Charts courtesy of StockCharts.com.
Disclosure – At the time of writing, the author did not own shares of any company mentioned in this article.