ChartAdvisor for August 6 2015 Tickers in this article: SPY, DIA, QQQ, IWM The U.S. markets moved lower over the past week, as of Thursday's close, with the Russell 2000 falling behind indexes like the Standard &Poor 500. With robust growth in the U.S. services sector, the prospects of a Federal Reserve rate hike remain in play, despite the weakness in the export sector due to the stronger U.S. dollar. The prospects of a rate hike have capped capital gains in the major indexes.
International markets moved higher over the past week, as of Thursday's close. Japan's Nikkei 225 rose 0.65%; Germany's DAX 30 rose 2.44%; and, Britain's FTSE 100 rose 0.68%. In Europe, economic expansion slowed in July as France and Italy slowed, but still beat economist expectations. In Asia, China's economy showed renewed signed of weakness in July following a brief pick-up in June.
The S&P 500 SPDR (SPY) 
The S&P 500 SPDR (ARCA: SPY) jumped 1.36% over the past week, as of Thursday's close. After breaking below its 50-day moving average and pivot point at 209.26, the index continues trading in the middle of its price channel. Traders should watch for a rebound to the upper end of the channel at around 214.00 or a move lower to test its 200-day moving average at 205.77. Looking at technical indicators, the RSI appears neutral at 45.43, while the MACD remains largely sideways as well.
Dow Jones Industrial Average SPDR (DIA)  The Dow Jones Industrial Average SPDR (ARCA: DIA) jumped 0.97% over the past week, as of Thursday's close. After falling below its 200-day moving average at 176.42, the index fell to its lower trendline resistance at around 174.00. Traders should watch for a rebound higher toward the pivot point at 177.19 or a breakdown to S1 support at 173.27. Looking at technical indicators, the RSI appears oversold at 37.79, but the MACD remains in a decidedly bearish downtrend.
PowerShares QQQ Trust (QQQ) 
The PowerShares QQQ Trust (NASDAQ: QQQ) jumped 0.89% over the past week, as of Thursday's close. After falling below its pivot point at 110.72, the index reached the 50-day moving average before rebounding slightly. Traders should watch for a rebound back toward its R1 resistance at 115.62 or a move lower to S1 support at around 107.06. Looking at technical indicators, the RSI appears neutral at around 48.03, while the MACD could move in either direction.
iShares Russell 2000 Index ETF (IWM)  The iShares Russell 2000 Index ETF (ARCA: IWM) jumped 0.57% over the past week, as of Thursday's close. After falling sharply from its pivot point at around 123.01, the index reached its 200-day moving average at 120.52. Traders should watch for a rebound back toward the pivot point or a move lower to its S1 support at around 119.29. Looking at technical indicators, the RSI appears oversold at 37.32, while the MACD remains in a very clear bearish downtrend.
Looking Ahead The major indexes moved lower over the past week, as of Thursday's close, as traders sold off amid speculation of rising rates later this year. Next week, traders will be closely watching retail sales on August 13th, jobless claims on August 13th, and industrial production on August 14th, as well as any comments out of the Federal Reserve regarding the future of 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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