The major U.S. indexes moved higher over the past week after the Commerce Department upped second quarter economic growth to a 3.1% annualized rate. While hurricanes Harvey and Irma could negatively affect third quarter growth, the economy remains largely on track, and rebuilding efforts could boost growth during the fourth quarter and into next year.
The upward revision from the 3.0% gross domestic product reflected a faster inventory investment.Businesses could also increase their inventory investments in a move that could offset any declines.
International markets followed the U.S. markets higher. Japan’s Nikkei 225 rose 0.29%; Germany’s DAX 30 rose 1.88%; and Britain’s FTSE 100 rose 0.8%. In Europe, the European Commission’s Economic Sentiment Indicator rose to the highest levels since June 2007, which supports the European Central Bank’s plans to rein in its monthly purchases of government bonds. In Asia, China has been successful at maintaining growth while cleaning up its financial sector. (See also: How ETF Investors Are Allocating to China.)
The SPDR S&P 500 ETF rose 0.72% in the last week of September. After rebounding from R1 support at $249.09, the index rebounded to fresh highs. Traders should watch for an extended breakout to R2 resistance at $251.91 or a move lower to retest R1 support levels. Looking at technical indicators, the relative strength index (RSI) reached overbought levels at 70.23, but the moving average convergence divergence (MACD) remains in a bullish uptrend after briefly approaching a bearish crossover. (For more, see: Why the S&P 500 Could Rise to Over 3,000 in 2018.)
Weekly technical summary of the major U.S. indexes. …read more
Read more here: Stocks Move Higher, Led by Small Caps on Russell 2000
Category: SPY, DIA, IWM, QQQ