Market ChartAdvisor March 11,2016

By Anthony Jerdine| March 11, 2016

The U.S. markets moved lower over the past week, as of Thursday’s close, with the exception of the Dow Jones Industrial Average. Over the past couple of weeks, crude oil prices have rallied from their lows of below $30 to nearly $40 per barrel, which could help reduce pressure on some energy companies at the expense of consumers. Employment data continued to improve; however, with employment claims falling to 259,000, compared to the 272,000 figure economists estimated on Thursday.

International markets also moved lower over the past week, as of Thursday’s U.S. close. Japan’s Nikkei 225 fell 0.11%; Germany’s DAX 30 fell 0.1%; and, Britain’s FTSE 100 fell 0.95%. In Europe, the ECB announced that interest rates would be cut to zero, bank deposit rates would be cut to -0.4% and its QE program would be expanded to 80 billion euros per month. In Asia, Chinese markets moved sharply lower after bearish trade data showing a dramatic slowdown in exports.

The S&P 500 SPDR (ARCA: SPY) fell 0.41% over the past week, as of Thursday’s close. After briefly breaking out from its 200-day moving average at 200.74, the index moved modestly lower as traders locked in profits. Traders should watch for an ongoing move higher toward the upper trendline at 205.00 or a move below the 200-day moving average to the 50-day moving average at 193.18. Looking at technical indicators, the RSI appears overbought at 63.72, while the MACD remains in a bullish uptrend.

SPY Chart

The Dow Jones Industrial Average SPDR (ARCA: DIA) rose 0.06% over the past week, as of Thursday’s close. After breaking above its 200-day moving average at 169.75, the index moved past 170.00. Traders should watch for an ongoing move higher toward R2 resistance at 175.80 or a move lower below its 200-day moving average toward its 50-day moving average at 164.23. Looking at technical indicators, the RSI appears overbought at 65.22, while the MACD remains in a bullish uptrend.

DIA Chart

The PowerShares QQQ Trust (NASDAQ: QQQ) fell 0.93% over the past week, as of Thursday’s close. After rebounding from its 50-day moving average, the index moved closer towards its R1 resistance at 106.59. Traders should watch for a breakout toward the 200-day moving average at 107.51 or a move lower to the 50-day moving average at 103.17. Looking at technical indicators, the RSI appears neutral at 58.38, while the MACD remains in a bullish uptrend.

QQQ Chart

The iShares Russell 2000 Index ETF (ARCA: IWM) fell 1.6% over the past week, as of Thursday’s close. After breaking above trend line resistance, the index gave up some ground and moved toward its R1 support at 106.63. Traders should watch for a breakout toward R2 resistance at 110.52 or a move lower toward its trend line support. Looking at technical indicators, the RSI appears a bit lofty at 60.06, while the MACD remains in a bullish uptrend.

IWM Chart

The Bottom Line
The major indexes moved lower over the past week, as of Thursday’s close. While many RSI readings suggest overbought conditions, the MACD remains in a bullish uptrend. Next week, traders will be closely watching a number of economic indicators including retail sales on March 15, the FOMC statement on March 16, and consumer sentiment data on March 18.

AnthonyJerdine

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