Saturday, April 25, 2009

WizzWatch Market Newsletter 04.27.09 – 05.01.09

To end the Dow Jones Industrial Average and the S&P 500 ended their six consecutive weeks of upside strength on a down note. The Nasdaq edged higher to ending the week on the upside for its seventh consecutive week in a row. The best performers were material stocks followed by technology. Healthcare and consumer staples were the worst performers for the week. Oil pushed higher as the U.S. dollar retreated against a basket of major currencies.

The Dow Jones Industrial Average started out trading at the beginning of the week at 8,128.94 but fell to a low of 7,791.95 before moving higher. Here were 19 stocks out of the Dow 30 were on the downside as the other 11 stocks moved to the upside. The Dow Industrials ended the week trading at 8,076.29 down -55.04 or 0.68 percent on 10.6 billion trading volume. Downside support on the Dow is at 7,447.26 with upside resistance at 8,190.66. In order for the Dow Jones Industrials to move higher the index would need to break above 8,190.66.

At the Nasdaq there was a completely different story. The Nasdaq ended the week on the upside thanks to positive earnings news from companies like Apple and eBay to name a few. The index ran up to end the week positive for the seventh consecutive week in a row. The last time the Nasdaq ran up for seven weeks was December of 2005. The index is above its 5, 10 and 50 week moving averages. As for now the Nasdaq is in overbought territory so there is a possibility that the tech weighed index may move lower in the near term. The Nasdaq ended the week trading at 1,694.29 up 21.22 point or 1.27% on 13.06 billion volume.

The Standard and Poors 500 ended the week on a negative note due to a pullback in the financial index consumer staples and healthcare. The chart of the S&P has a few similarities to the Dow Jones Industrial Average. Both have moved to the upside for the past six week but ended this week on the downside on heavier than average trading volume. The S&P 500 is above it 5, 10, and 50 week moving averages. The index opened the week trading at 868.27 but ended the week slightly below its opening price closing at 866.23. The index ended the week down -3.37 or 0.39 percent on 31.17 billion trading volume.

As for the price of gold the index moved to the upside after several weeks of declines. The Gold Index closed slightly above its 5 week moving average, but is currently below its 10 week moving average. The index is poised to move higher but will need to break above $924.80 in order to continue higher. In March of this year, the price of gold was very close surpassing multi-year price highs set at $1,033.90 per troy ounce in 2008. Upside resistance for the price of gold is in the $1,007.70 area. Any price movement above resistance will take the price of the precious metal higher. The index ended the week trading at $913.00 per troy ounce up $43.90 or 5.05% for the week.

At the NYMEX (New York Mercantile Exchange) oil moved higher for four days in a row but ended the week on the downside. The four day winning streak was its longest in 2 months. Oil futures are down half from where they were this same time last year. The index is currently trading below its 5 week moving average but above its 10 week. The oil index pulled back below its 10 week moving average earlier in the week but ended trading higher to end the trading day on Friday. Downside support is at $49.30 per barrel and upside resistance is in the $56 price area. The oil index ended the week trading at $51.55 per barrel down $0.92 or -1.75 percent for the week.

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

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