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 July 21 2014

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

Major U.S. indices were mixed over the past week, led by the Dow Jones Industrial Average and lagged by small-cap stocks, as of Thursday’s close. Despite concerns that the equity market might be overextended, the U.S. economy showed some signs of strength in June after unemployment claims unexpectedly fell and manufacturing activity in the mid-Atlantic region accelerated to its highest level in years.

International markets moved largely higher over the past week, as of Thursday’s close. Japan’s Nikkei 225 jumped 1.07%; Britain’s FTSE 100 jumped 0.85%; and, Germany’s DAX 30 jumped 0.91%. In Europe, investors grew concerned over a slowdown in Germany’s economy, as Germany has generally served as an anchor for the region. In Asia, China’s economy grew at a 7.5% annualized rate–a positive sign.

SPDR S&P 500 (ARCA:SPY)

The SPDR S&P 500 (SPY) ETF fell 0.45% over the past week, as of Thursday’s close. After reaching new highs earlier this month, the index moved lower toward its pivot point at 194.42. Traders should watch for a rebound from those levels to retest its R2 resistance at 199.87 or a move lower to its lower trend line and 50-day moving average at 193.02. Looking at technical indicators, the RSI remains neutral at 50.95 and the MACDexperienced a bearish crossover.
SEE: Profiting In Bear And Bull Markets

SPDR Dow Jones Industrial Average (ARCA:DIA)
The SPDR Dow Jones Industrial Average (DIA) ETF rose 0.24% over the past week, as of Thursday’s close. After moving off of its R2 resistance at 171.02, the index moved lower towards its R1 resistance at 169.45. Traders should watch for a rebound higher from these levels to retest its R2 resistance or a breakdown from its lower trend line towards its 50-day moving average at 167.44. Looking at technical indicators, the RSI and MACD both appear to be neutral.
PowerShares QQQ (Nasdaq:QQQ)
chart
The PowerShares QQQ (QQQ) ETF fell 0.69% over the past week, as of Thursday’s close. After reaching new highs earlier this month, the index moved lower toward its trend line support. Traders should watch for a breakdown from these levels toward its pivot point at 92.82 or a rebound higher to retest its R2 resistance at 96.56. Looking at technical indicators, the RSI appears neutral at 56.21 but the MACD appears a little top-heavy.
iShares Russell 2000 (NYSE:IWM)
The iShares Russell 2000 (IWM) ETF fell 2.27% over the past week, as of Thursday’s close. After moving toward the upper portion of its price channel, the index retreated toward its 200-day moving average at 112.58. Traders should watch for a rebound from these levels towards its pivot point at 115.83 or a breakdown to its lower trend line and S2 support at 108.06. Looking at technical indicators, the RSI appears oversold at 35.31 but the MACD remains bearish.
The Bottom Line
The major U.S. indices were mixed over the past week, as of Thursday’s close. Although many of them appear top-heavy judging by technical indicators. Traders will be watching a number of key economic events next week, including the consumer price index and existing home sales on July 22nd, jobless claims and new home sales on July 24th, and durable goods orders on July 25th.

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 July 13 2014

Commentary

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

Major U.S. indices moved lower over the past week, as of Thursday’s close, driven by equity valuation concerns and turmoil in European banks. After the Dow Jones Industrial Average broke through 17,000 last week, traders have become increasingly worried about a near-term correction given lofty P/E ratios along with a questionable economy. Wage growth also remains weak at just 2% this year, which means that consumers aren’t feeling any healthier in the financial sense.

International markets followed the U.S. with lower yields over the past week. After Thursday’s U.S markets closed, Japan’s Nikkei 225 fell 1.6%; Britain’s FTSE 100 fell 2.82% and Germany’s DAX 30 fell 3.5%. In Europe, Germany expressed concerns over its second quarter performance given the crisis in Ukraine, while banking institutions in the region remain on unstable ground. In Asia, China’s growth rates picked up with GDP growth rates of 7.4% projected for 2014 and 7.6% projected in 2015.

SPDR S&P 500 (ARCA:SPY)

The SPDR S&P 500 (SPY) ETF fell 0.96% over the past week, as of Thursday’s close. After reaching all-time highs earlier this month, the index moved lower to trade just above its pivot point at 194.42. Traders should watch for a rebound from these levels toward the R1 resistance at 197.80 or a move lower to strong support (S1, 50-day MA, trend line) at 192.02. Looking at technical indicators, the RSI and MACD both appear to be relatively neutral.
SEE: Profiting In Bear And Bull Markets

SPDR Dow Jones Industrial Average (ARCA:DIA)
The SPDR Dow Jones Industrial Average (DIA) ETF fell 0.81% over the past week, as of Thursday’s close. After reaching new highs earlier this month, the index broke below its lower trend line towards its pivot point at 167.86. Traders should watch for a sustained move down towards S1 support at 166.29 or a rebound back up to its R1 resistance and trend line at 169.45. Looking at technical indicators, the RSI and MACD both appear to be trading at relatively neutral levels.
PowerShares QQQ (Nasdaq:QQQ)
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The PowerShares QQQ (QQQ) ETF fell 1.03% over the past week, as of Thursday’s close. After reaching new highs earlier this month, the index fell sharply and moved toward its pivot point at 92.82. Traders should watch for a move down to these levels or even S1 support at 91.49 before major trend line support or a rebound to re-test its R1 resistance at 95.23. Looking at technical indicators, the RSI still appears overbought at 64.03 while the MACD appears relatively neutral.
iShares Russell 2000 (NYSE:IWM)
The iShares Russell 2000 (IWM) ETF fell 3.66% over the past week, as of Thursday’s close. After testing its prior highs, the index moved sharply lower below its pivot point at 115.83 to its 50-day moving average at 113.84. Traders should watch for a rebound from these levels back to its pivot point, or a move even lower towards its 200-day moving average at 112.36. Looking at technical indicators, the RSI looks modestly oversold but the MACD experienced a bearish crossover.
The Bottom Line
The major U.S. indices moved lower over the past week, as of Thursday’s close, although many of the high RSI readings moderated. Looking ahead, traders will be watching a number of key economic events over the coming week, including retail sales on July 15th, PPI and industrial production on July 16th, and jobless claims and housing on July 17th. Concerns over lofty equity valuations may also cast a shadow over any potential upside over the coming weeks.

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