WizzWatch Market Newsletter 01.26.09 – 01.30.09

For the week that past the Dow Jones Industrial Average, the Nasdaq, and the S&P continued to decline. All three major indices ended the week on the downside for the third week in row. The downside move is due to the worst recession fears worldwide. Jobless claims, as well as housing data were also major factors involved with the market ending the week lower. We are continuing to see week after week of bad data as the Dow Jones Industrial Average continues to move between 7400 and 9000 for the past 12 weeks in a sideways consolidation.

The Dow Jones Industrial Average pulled back on heavier than average volume for the third consecutive week. Financials and the fall of corporate profits were part of the reason for the decline. The Index is on the verge of pulling back very close to lows that were made in mid November at 7449.78. The Dow is currently below its 5, 10, 50 and 200 week moving average. The Index ended the week trading at 8,077.56 down -203.66 or -2.46 percent. At the Nasdaq Composite Index there was more downside pressure bringing the index down for the third straight week. The decline in the index was due to companies such as (MSFT) Microsoft and (SBUX) Starbucks stating that they will lay off thousands of employees. The Nasdaq is below its weekly moving averages after ending the week trading at 1,447.29 down 52 points or 3.40 percent. Over at the S&P the index pulled back ending the week on heavier than average downside volume. The S&P is also below its major weekly moving averages so there may be more downside to come. The S&P 500 ended the week at 831.95 down -18.17 or 2.14 percent.

On the gold front the Gold Continuous Contract Index has been moving higher after pulling back for the 2 prior weeks. The gold index jumped to end the week above the highs that it made at the beginning of the year. The gold index in poised to move higher as it continues to make higher highs and higher lows moving above its 5 and 10 week moving average. The gold index ended the week trading at $897.70 per troy ounce up $57.80 or 6.88 percent.

As for the oil index it continues to move in a sideways consolidation. The oil index is trading above its 5 and 10 week moving averages, but below its 50 and 200 week moving averages. The index will make a huge move to the upside if it breaks above $49 per barrel. There is a possibility that OPEC may cut production in the near term so we will see higher prices going forward. OPEC oil ministers feel that a fair price for a barrel of oil is $75 per barrel. Oil ended the week trading at $46.47 per barrel up $3.90 or 9.16 percent.


*** Please have a look at the charts below ***
By: Marlin Rolle