| Tickers in this article: SPY, DIA, QQQ, IWM The U.S. markets moved largely higher over the past week, as of Thursday's close, led by technology stocks on the NASDAQ and lagged by industrials in the Dow Jones Industrial Average. While the markets have recovered from their lows last week, investors remain concerned about a Federal Reserve rate hike in September, as well as problems in emerging markets. The strong U.S. dollar could also continue to take a toll on corporate earnings of firms that export goods abroad.
International markets moved largely lower over the past week, as of Thursday's close. Japan's Nikkei 225 rose 3.06%; Germany's DAX 30 rose 1.72%; and, Britain's FTSE 100 rose 1.7%. In Europe, Eurostat increased both first and second quarter growth rates by 0.1% to 0.5% and 0.4%, respectively, representing the highest rate since early 2011. In Asia, Japan's core machinery orders fell a surprise 3.6% in July, suggesting that the region's problems may be far from over.
The S&P 500 SPDR (SPY) 
The S&P 500 SPDR (ARCA: SPY) rose 1.69% over the past week, as of Thursday's close. After moving lower last week, the index posted a modest recovery during the shortened holiday week to its pivot point at 197.13. Traders should watch for a breakout from these levels toward its lower trend line at 205.00 or a move lower to its S1 support at 182.94. Looking at technical indicators, the RSI appears a bit oversold, while the MACD could be seeing a bullish crossover.
Dow Jones Industrial Average SPDR (DIA)  The Dow Jones Industrial Average SPDR (ARCA: DIA) rose 1.5% over the past week, as of Thursday's close. After falling lower during the shortened holiday week, the index rebounded modestly to its pivot point at 164.01. Traders should watch for a breakout from these levels toward its lower trendline at around 173.00 or a move lower to S1 support at around 151.73. Looking at technical indicators, the RSI appears a bit oversold at 43.20, while the MACD saw a bullish crossover.
PowerShares QQQ Trust (QQQ) 
The PowerShares QQQ Trust (NASDAQ: QQQ) rose 2.64% over the past week, as of Thursday's close. After moving lower last week, the index posted a solid recovery during the shortened week near its trend line resistance. Traders should watch for a breakout back into its old channel or a move lower to its pivot point at 100.68 to regroup before a move higher. Looking at technical indicators, the RSI appears neutral at 47.93, but the MACD experienced a bullish crossover.
iShares Russell 2000 Index ETF (IWM)  The iShares Russell 2000 Index ETF (ARCA: IWM) rose 1.69% over the past week, as of Thursday's close. After moving lower last week, the index recovered to nearby its pivot point at 115.66 before giving up some ground. Traders should watch for a breakout from these levels toward its upper trendline resistance at around 117.75 or a breakdown lower to its S1 support at 107.80. Looking at technical indicators, the RSI appears neutral at 44.87, while the MACD saw a bullish crossover.
The Bottom Line The major indexes moved higher over the past week, as of Thursday's close, with many of them experiencing bullish crossovers of the MACD indicator. Next week, traders will be watching a number of key economic indicators, including retail sales and industrial production on the 15th, CPI data on the 16th, and of course, the much-anticipated FOMC announcement on the 17th at 2:00 pm EST. (See related: All Eyes On FOMC for the Most Significant Rate Decision In Years.)
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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