WizzWatch Market Newsletter 02.09.09 – 02.13.09

After four weeks of declines in the major market indices, the Dow Jones Industrial Average, the Nasdaq and the S&P 500 all ended the week on the upside.

The Dow Jones Industrials edged higher to end the week after 4 weeks of downside pressure. The index is below its 5 and 10 week moving averages for now. Downside support on the Dow is currently at 7,449.38. The index ended the week trading at 8,280.59 up 279.73 points or 3.50 percent on 7.83 billion trading volume higher than the average weekly.

At the Nasdaq there was also a move to the upside after weeks of declines. The index is above both it 5 and 10 week moving average. The Nasdaq has been moving in a sideways consolidation for the past 17 weeks between a low of 1200 and a high of 1700. As for now, the Nasdaq looks poised to head higher. The index would need to move above 1750 in order to move into higher ground. The Nasdaq ended the week trading at 1591.71 up 115.29 points or 7.81 percent on higher than average volume of 11.21 billion.

Over at the Standard and Poors 500 there was a big move to the upside as the index finished the week positive territory. The index is below its 5, 10, 50 and 200 week moving averages. The S&P will need to break the 900 area in order to move higher after several weeks of sideways consolidation. The S&P 500 ended the week trading at 868.60 up 42.72 points or 5.17 percent on 24.8 billion trading volume.

As for the Gold Continuous Contract Index there was a slight pullback as the index ended the week lower. The price of gold pulled back after two weeks of gains with higher highs and higher lows. The index is currently above its 5, 10, 50 and 200 weeks moving averages. Gold has been on a run since mid October 2008 coming from a low of $680 per troy ounce. There might be a slight pullback in the week to come. I predict that gold may pullback to $860 per troy ounce before heading higher. The Gold index ended the week trading at $914 per troy ounce down $14.10 or 1.52 percent.

On the oil front the index continues to decline in price. The oil index is below its 5, 10, 50 and 200 week moving averages. The oil index has been on a decline for the past 31 weeks. The index is very close to touching lows that were made at $35.13 per barrel in December of 2008. In order for the oil index to move into positive territory it will have to break upside support at $51.30 per barrel. The oil index ended the week trading at $40.17 down $1.51 or 3.62 percent.


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