Stocks Move Lower Amid Rising Risk

The major U.S. indexes moved lower over the past week, with the exception of small-cap stocks posting modest gains. Industrial production rose a better-than-expected 0.5% in March, but jobless claims were slightly less favorable than many economists were expecting, and the risk of an escalating trade war with China continues to weigh on the market. There is also rising political risk as details from Robert Mueller’s investigation emerge.

International markets were lower over the past week. Japan’s Nikkei 225 rose 1.46%; Germany’s DAX 30 rose 0.49%; and Britain’s FTSE 100 rose 1.49%. In Europe, stocks ended the week higher despite worries about Syria and U.S.-China tension. In Asia, traders remain concerned about a potential trade war between the U.S. and China, although Japan has not announced any counter-tariffs at the moment. (For more, see: Stocks That Could Be Hit by a Trade War With China.)

The SPDR S&P 500 ETF  fell 0.13% over the past week. After briefly reaching trendline resistance, the index moved to the pivot point support at $266.61. Traders should watch for a breakdown from these levels to test trendline support at around $259.00 or a move higher to retest upper trendline resistance. Looking at technical indicators, the relative strength index (RSI) appears neutral at 50, but the moving average convergence divergence (MACD) experienced a bullish crossover and remains in an uptrend.

Political risks and trade concerns sent most major U.S. indexes lower over the past week, although small caps posted slight gains. …read more

Read more here: Stocks Move Lower Amid Rising Risk

Category: SPY, DIA, QQQ, IWM

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