Stocks Mixed as Large Caps Outperform Small Caps

The major U.S. indexes were mixed over the past week, with industrials in the Dow Jones Industrial Average outperforming small-cap stocks in the Russell 2000. November non-farm payrolls rose 228,000, which exceeded consensus estimates calling for 190,000, while average hourly earnings rose a better-than-expected 0.2% for a 2.5% annual pace. Meanwhile, the ADP Employment Report came in at 190,000, slightly above a consensus estimate of about 186,000 for the month.

International markets were flat or in positive territory over the past week. Japan’s Nikkei 225 was unchanged; Germany’s DAX 30 rose 2.27%; and Britain’s FTSE 100 rose 1.31%. In Europe, the Eurozone economy expanded by 0.6% during the third quarter, which points to a stronger-than-expected year. In Asia, Japan’s economy expanded at a 2.5% annual pace between July and September, which is up from an earlier estimate of 1.4% growth. Despite these gains, investors remain concerned over the rising threat from North Korea.

The SPDR S&P 500 ETF  rose 0.4% over the past week. After nearly reaching its pivot point at $262.23, the index rebounded towards the upper end of its price channel this week. Traders should watch for a breakout to upper trendline and R1 resistance at $268.83 or a move lower to retest the pivot point or hit lower trendline support at $260.00. Looking at technical indicators, the relative strength index (RSI) moved back into overbought territory at 72.03, while the moving average convergence divergence (MACD) remains in a bullish uptrend dating back to late November. (See also: 77% of Investors Worried About Market Bubbles in Survey.)

 

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

Read more here: Stocks Mixed as Large Caps Outperform Small Caps

Category: SPY, DIA, IWM, QQQ

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