The major U.S. indexes moved largely higher over the past week, with the exception of technology stocks in the PowerShares QQQ Trust. Third quarter gross domestic product (GDP) game in at a solid 3.2% annualized rate in its final reading, but nonresidential fixed investment accounted for a much larger slice of the pie than consumer spending. Consumer sentiment also fell to 95.9 in December, although the current conditions component hit 113.8 this month.
International markets were mixed over the past week. Japan’s Nikkei 225 rose 1.53%; Germany’s DAX 30 fell 0.23%; and Britain’s FTSE 100 rose 1.3%. In Europe, the euro experienced a modest shock after Catalan separatists won a regional election that could hurt the region’s fourth largest economy. In Asia, the Japanese government increased its output and capex estimates as the economy continued to post a strong recovery.
The SPDR S&P 500 ETF rose 0.38% over the past week. After breaking out from R1 resistance at $267.46, the index moved lower to retest trendline support levels by the end of the week. Traders should watch for a breakdown to the pivot point at $160.90 or a rebound to retest upper trendline resistance at around $270.00. Looking at technical indicators, the relative strength index (RSI) remains in overbought territory at 70.95, while the moving average convergence divergence (MACD) could see a bearish crossover in the near term after experiencing a rise dating back to late November. (See also: Hedge Funds See Opportunity in the S&P 500.)
Weekly technical summary of the major U.S. indexes. …read more
Read more here: Stocks Continue to Move Higher as Q3 GDP Remains Solid
Category: SPY, DIA, IWM, QQQ