Chart Advisor for August 28, 2015 Tickers in this article: SPY, DIA, QQQ, IWM The U.S. markets were mixed over the past week, with the Nasdaq posting a 1.69% gain and the Russell 2000 Index, a benchmark of small-cap stocks, losing 1.12% as of Thursday's close. After suffering from a six-day losing streak, the market recovered sharply to end the week on a much higher note than on which it started. The economy seems to have grown much faster than expected between April and June, with the government raising growth estimates from 2.5% to 3.7%, citing higher consumer, business and government spending.
Japan's Nikkei 225 Stock Average fell 2.93%, Germany's DAX 30 rose 1.89% and Britain's FTSE 100 fell 0.09%. In the Eurozone, manufacturing and services purchasing managers' indices (PMIs), indicators of the health of the manufacturing sector, both expanded. The exception was France, which continues to lag behind the rest of the region. In Asia, China's stock market continued to experience extreme volatility that has left investors guessing just how severe the country's economic downturn could be beneath the central government's headline figures.
The S&P 500 SPDR (SPY) 
The SPDR S&P 500 ETF (ARCA: SPY) rose 0.73% over the past week as of Thursday's close. After breaking down sharply lower, the ETF, which is based on the S&P 500 Index, briefly traded as low as $182.50 before rebounding to its S2 support at around $200.19. Traders should watch for a breakout above these levels back to its former support and S1 support at $205.35. Traders could also watch for a breakdown to test its lows. Looking at technical indicators, the relative strength index (RSI) recovered to neutral levels, while the moving average convergence divergence (MACD) experienced a bearish crossover.
Dow Jones Industrial Average SPDR (DIA)  The SPDR Dow Jones Industrial Average ETF (ARCA: DIA) rose 0.01% over the past week as of Thursday's close. After breaking down sharply lower, the ETF briefly traded below $152.50 before rebounding sharply higher. Traders should watch for a breakout higher to its S2 support at $169.32 or a breakdown lower to retest its lows of around $152.50. Looking at technical indicators, the relative strength index appears neutral at 42.14, while the MACD experienced a bearish crossover.
PowerShares QQQ Trust (QQQ) 
The PowerShares QQQ Trust (NASDAQ: QQQ), an ETF based on the Nasdaq 100 Index (the 100 largest and most actively traded companies on Nasdaq), rose 1.69% over the past week as of Thursday's close. After breaking sharply lower, the ETF briefly touched $85.00 before rebounding back above $100.00 and towards its key support levels. Traders should watch for a rebound above its S1 support and 200-day moving average at around $106.50 or a move back down to its S2 support at $102.16. Looking at technical indicators, the relative strength index appears neutral, while the MACD looks bearish.
iShares Russell 2000 Index ETF (IWM)  The iShares Russell 2000 ETF (ARCA: IWM), which offers exposure to 2000 small-cap U.S. companies, fell 1.12% over the past week as of Thursday's close. After breaking down sharply lower, the index briefly touched the $110.00 levels before recovering a bit by the end of the week. Traders should watch for a breakout from its S2 support at $115.61 or a move lower to retest its lows at around $110.00. Looking at technical indicators, the relative strength index appears a bit oversold at 38.55, but the MACD remains in a bearish downtrend.
The Bottom Line The major U.S. indexes were mixed over the past week amid extreme volatility, as of Thursday's close. Next week, traders will be closely watching a number of domestic economic indicators, including the ISM Manufacturing Index data on September 1, jobless claims on September 3 and employment data on September 4. Of course, traders will be also closely watching the central bank for any hints on interest rates.
Refine Your Financial Vocabulary Sign up to receive our FREE Term of the Day newsletter. Gain a better understanding all things financial with technical and easy-to-understand explanations. Click here to begin developing your financial language with this daily newsletter. Charts courtesy of stockcharts.com Disclosure - At the time of writing, the author did not own shares of any company mentioned in this article.
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