Stocks Mixed After a Rocky First Quarter

The U.S. major index ended the shortened holiday with a comprehensive note and recorded its first quarterly loss in the last three years. Although the stock market sharply increased after the tax cuts in January, due to increased inflation, it fell in February and fell again in March due to concerns about a trade war with China. Facebook, Inc.(FB)  And other technology stocks were also dragged down by allegations of privacy violations after the Cambridge Analytica scandal.

The international market has risen in the past week. Japan’s Nikkei 225 Index rose 5.04%, Germany’s DAX 30 Index rose 1.49%, and Britain’s FTSE 100 Index rose 1.87%. In Europe, JPMorgan analysts said that the euro may soon turn lower given the deterioration of economic data in the region after several months of performance. In Asia, the output of Japanese factories increased by 4.1% in February because of a substantial increase in labor demand.

Man in suit standing on a paper boat made out of a dollar bill in a stormy sea

SPDR Standard & Poor’s 500 ETF rose by 0.39% over the past week. After rebounding from the historical lows, the basic S&P 500 index rebounded to the high level at the end of this week. Traders should note that the fulcrum’s rally is $268.14, or from the 200-day moving average and S1 support at $254.34 to S2 support at $238.12. Looking at the technical indicators, the relative strength index (RSI) was slightly oversold, at 42.71, but the MACD is still in a downward trend, which may indicate more downside trends in the future.

SPDR Dow Jones Industrial Average ETF 0.99% rise in the past week has been the best performing index. After briefly touching S1 support at $234.40, the index rebounded higher this weekend. Traders should note a breakout of 248.08 USD or a breakthrough of 219.06 USD from S1 support and 200-day MA to S2 support. From the technical indicators, the RSI seems to be neutral to 44.19, but the MACD is still in a long-term bearish downtrend.

Technical charts showing the performance of SPDR Dow Jones Industrial Average ETF (DIA)

[Learn more about supplemental technical indicators, such as RSI and MACD, in Chapter 4 of the Technical Analysis Course at Investopedia Institute]

PowerShares QQQ Trust (Nasdaq: QQQ) fell 0.98% in the past week, becoming the main performance indicator of the Nasdaq 100 index’s worst performance. After falling below the fulcrum, the index hit a new low of about $157.50 last week. Traders will watch for a drop or rebound from these levels to S1’s support at $154.40 or the 200-day moving average at $152.13 to retest the fulcrum at around $162.43. Looking at the technical indicators, the RSI showed a slight oversold at 42.16, but the MACD is still in a downward trend.

iShares Russell 2000 Index ETF (ARCA: IWM) fell 0.17% over the past week. After falling to the fulcrum of 149.67 U.S. dollars, the index rebounded slightly on Thursday but remained closed for a week. Traders should be concerned about the 50-day moving average breaking through $153.88 to the R1 resistance at $157.18 or the break-off point from the fulcrum to the 200-day moving average at $147.02. From the technical indicators, the RSI seems to be neutral at 45.32, but the MACD is still in a downward trend.

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