Stocks Mixed After a Rocky First Quarter

The major U.S. indexes ended the shortened holiday week on a mixed note and logged their first quarterly losses in nearly three years. While stocks moved broadly higher in January following tax cuts, they fell in February due to concerns about higher inflation and again in March amid fears of a trade war with China. Facebook, Inc. and other tech stocks have also been weighed down by allegations of privacy violations following the Cambridge Analytica scandal.

International markets were higher over the past week. Japan’s Nikkei 225 rose 5.04%, Germany’s DAX 30 rose 1.49%; and Britain’s FTSE 100 rose 1.87%. In Europe, JPMorgan analysts suggested that the euro could be about to turn lower given deterioration in the region’s economic data following months of outperformance. In Asia, Japanese factory output rose 4.1% in February as labor demand has strengthened considerably.

The SPDR S&P 500 ETF rose 0.39% over the past week. After rebounding from its prior lows, the underlying S&P 500 index rebounded to end the week on a higher note. Traders should watch for a rebound to the pivot point at $268.14 or a breakdown from the 200-day moving average and S1 support at $254.34 to S2 support at $238.12. Looking at technical indicators, the relative strength index (RSI) appears slightly oversold at 42.71, but the moving average convergence divergence (MACD) remains in a bearish downtrend that could signal more downside ahead. (See also: 3 Charts to Watch as Volatility Rises.)

Mixed results over the shortened holiday week ended a volatile quarter for the major U.S. indexes. …read more

Read more here: Stocks Mixed After a Rocky First Quarter

Category: SPY, DIA, QQQ, IWM

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