Stocks Edge Higher Despite Rising Risks

The major U.S. indexes moved higher over the past week, despite weak nonfarm payroll data on Friday morning. The Bureau of Labor Statistics reported 156,000 jobs added in August, which was lower than the 180,000 consensus forecast. While these figures were lower than expected, Wednesday’s favorable second quarter GDP revision was enough of a positive to offset any negativity, with a better-than-expected 3% annualized rate.

International markets saw mixed results over the past week. Japan’s Nikkei 225 rose 1.22%; Germany’s DAX 30 fell 0.21%; and Britain’s FTSE 100 rose 0.5%. In Europe, the market will be keeping a close eye on the European Central Bank’s upcoming monetary policy meeting, where measures to reduce stimulus could be announced. In Asia, investors will be keeping an eye on North Korean aggression, particularly with its recent missile launch over Japan. (See also: The 3 Biggest Risks Faced by International Investors.)

The SPDR S&P 500 ETF (ARCA: SPY SPDR S&P500 ETF Trust Units SPY 247.84 +0.14%) rose 1.34% over the past week. After breaking out from the 50-day moving average at $245.05, the index reached prior highs and trendline​ resistance at around $247.50. Traders should watch for a breakout to R1 resistance at $250.32 or R2 resistance at $253.16 on the upside or a move lower to retest the 50-day moving average. Looking at technical indicators, the relative strength index (RSI) moved higher to 60.9, while the moving average convergence divergence (MACD) experienced a bullish crossover that could signal upside ahead.

Weekly technical summary of the major U.S. indexes. …read more

Read more here: Stocks Edge Higher Despite Rising Risks

Category: SPY, DIA, IWM, QQQ

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