Major stock market indexes reached new all-time highs on Friday after bullish payroll data erased losses from earlier in the week. According to the Labor Department, non-farm payrolls rose by 255,000 jobs after an upwardly revised 292,000 jobs were added in June.

The data also showed that the average worker pay rose $0.08 and workers put in more hours than past months. Many analysts expect that the data could push the Federal Reserve to hike interest rates later this year.

International markets closed the week on a positive note. Japan’s Nikkei 225 fell 1.91%; Germany’s DAX 30 rose 0.29%; and, Britain’s FTSE 100 rose 0.94%. In Europe, the Bank of England declared that it would not only cut interest rates but restart its quantitative easing program. In Asia, China’s economy may have posted 6.7% year-over-year growth in the second quarter, but economists are becoming increasingly concerned over its ability to keep fueling the rapid growth.

The S&P 500 SPDR (ARCA: SPY) rose 0.47% over the past week to new highs, although it was the weakest major index. After breaking out from its upper trend line resistance, investors should watch for a move to R1 resistance at 220.75 on the upside or a move back down to its lower trend line support at 214.50 on the downside. Looking at technical indicators, the RSI remains firmly in overbought territory at 65.16, while the MACD remains in a bearish downtrend.

The Dow Jones Industrial Average SPDR (ARCA: DIA) rose 0.62% over the past week near its all-time highs. After rebounding from its pivot point at 182.35, traders should watch for a breakout from its prior highs to its R1 resistance at 187.86 on the upside or a move back to its pivot point to regroup on the downside.

Looking at technical indicators, the RSI appears lofty at 63.15, while the MACD experienced a bearish crossover that could indicate downside ahead.

The PowerShares QQQ Trust (NASDAQ: QQQ) rose 1.34% over the past week to new highs, making it the top performing major index. After breaking out from its trend line resistance in early July, traders should watch for an ongoing move higher toward its R1 resistance at 118.32 on the upside or a move down to its pivot point at 112.45 on the downside.

Looking at technical indicators, the RSI appears very overbought at 73.38, while the MACD could see a near-term bearish crossover.

The iShares Russell 2000 Index ETF (ARCA: IWM) rose 1.03% over the past week to new highs. After rebounding from its prior R1 resistance, traders should watch for a breakout from its upper trend line resistance to R1 resistance at 124.45 on the upside or a move down to re-test its pivot point at 118.38 on the downside.

Looking at technical indicators, the RSI appears overbought at 65.61, while the MACD is trending sideways on the bearish side of the fence.

The Bottom Line

Most of the major indexes reached new highs over the past week, but technical indicators point to overbought conditions. Next week, traders will be closely watching a number of key economic events, including jobless claims on August 11th and retail sales on August 12th. All eyes will also be on the second quarter earnings for any further signs of weakness across the boarder economy.