Stocks Move Lower Amid Growing Risks to the Rally

The major U.S. indexes moved lower over the shortened trading week. On Sunday, North Korea conducted a nuclear test with an explosion estimated to be greater than 140 kilotons – or 10 times stronger than anything it has tested before. By Friday, investors had shifted their attention to a massive cyberattack exposing the personal information of 143 million people, as well as Hurricane Irma, which appears on track to hit Florida’s south coast as a Category 4 storm.

International markets were mixed over the past week. Japan’s Nikkei 225 fell 2.12%; Germany’s DAX 30 rose 1.33%; and Britain’s FTSE 100 fell 0.81%. In Europe, the European Central Bank (ECB) indicated that it is considering how to wind down its easy money policies, with details set to emerge in October’s meeting. In Asia, Chinese exports continue to experience a slowdown, but its domestic economy has been resilient. (See also: China Is Slowing: Here Are the Investing Implications.)

The SPDR S&P 500 ETF (ARCA: SPY SPDR S&P500 ETF Trust Units SPY 246.58 -0.12%) fell 0.51% during the shortened trading week, making it the best performing major index. After dragging along lower trendline resistance in August, the index rebounded past its pivot point at $246.58 in recent sessions. Traders should watch for an ongoing move higher to R1 resistance at $250.32 or a move lower to retest trendline support at around $244.00. Looking at technical indicators, the relative strength index (RSI) moved back to neutral levels of 53.96, while the moving average convergence divergence (MACD) continues to trend higher. (For more, see: The S&P 500 Is 300 Days Above Its 200-Day Moving Average.)

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

Read more here: Stocks Move Lower Amid Growing Risks to the Rally

Category: SPY, DIA, IWM, QQQ

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