ChartAdvisor for December 2, 2014

Tickers in this Article: SPY, DIA, QQQ, IWM Major U.S. indices were mixed over the shortened holiday week, led by technology stocks on the NASDAQ and lagged by small-cap stocks in the Russell 2000 index. While the U.S. economy continues to grow at a fairly robust rate, GDP growth was revised to a slower-than-expected annual pace and consumer confidence figures moved down a bit as the holiday shopping season begins. International markets were also mixed over the past week. Japan’s Nikkei 225 rose 0.05%; Germany’s DAX 30 rose 2.25%; and, Britain’s FTSE 100 fell 0.33%. In the Eurozone, inflation moved back to a five-year low in November as energy costs moved lower. In Asia, investors remain concerned with Japan’s slowing economy, which recent moved into an expected recession in 2014.

SPDR S&P 500 (SPY) The SPDR S&P 500 (SPY) ETF fell 0.03% over the past week. After breaking above its upper trend line to new highs, the index began to hover just below its R1 resistance levels at around 208.35. Traders should watch for a breakout from these levels to R2 resistance at 215.03 or a move lower to prior highs at 201.00 or so. Looking at technical indicators, the RSI appears quite lofty at 72.01 while the MACD appears ready for a near-term bearish crossover.

SPDR Dow Jones Industrial Average (DIA) The SPDR Dow Jones Industrial Average (DIA) ETF rose 0.17% over the past week. After breaking above its upper trend line to new highs, the index is trading right near its R1 resistance at 178.23. Traders should watch for a breakout to R2 resistance at 183.44 or a move down to its prior highs at about 172.50. Looking at technical indicators, the RSI appears very overbought at 77.76 while the MACD appears ready for a near-term bearish crossover.

PowerShares QQQ (Nasdaq:QQQ) The PowerShares QQQ (QQQ) ETF rose 1.26% over the past week. After breaking above its prior highs at the beginning of the month, the index moved past its R1 resistance at 105.35 to set a new record. Traders should watch for an extended move to R2 resistance at 109.31 or a move back down to its prior highs at around 101.00. Looking at technical indicators, the RSI is overbought at 77.65, but the MACD remains in a bullish uptrend that’s largely intact.

iShares Russell 2000 (NYSE:IWM) The iShares Russell 2000 (IWM) ETF fell 1.05% over the past week. After rebounding from trend line support, the index moved briefly past 118.00 before taking a sharp downturn at the end of the week. Traders should watch for a move down to trend line support at 113.74 or a move back up to resistance at around 120. Looking at technical indicators, the RSI appears modest at 55.55, but the MACD appears to be headed back into a bearish downtrend.