Sunday, April 5, 2009

WizzWatch Market Newsletter 04.06.09 – 04.10.09

As the past week came to a close we saw another week of upside in the stock market. The Dow, Nasdaq and S&P 500 continued to move higher as gold declined for the second week in a row. Unemployment hit a 25 year high as factory job numbers took a dive as companies cut spending. The bear market rally continued for the fourth week in a row, as the Dow Jones Industrial Average, the Nasdaq and the S&P 500 end the week on the upside.

At the Dow the index opened the week trading at 7,773.31 but ended the week much higher. The Dow is currently trading above its 5 and 10 week moving average. The index is in overbought territory, as it crossed above the 8000 mark. The last time the Dow closed above 8000 points was October of 2008. The Dow ended the week trading at 8,017.59 up 241.41 or 3.10 percent on 8.63 billion trading volume.

At the S&P 500 there is no difference in comparison to the direction of the Dow Jones Industrial Average. The Standard and Poors 500 is in overbought territory. The index is trading above its 5 and 10 week moving average. The S&P opened the week at 809.07 but ended the week trading higher closing at 842.50 up 26.56 or 3.26 percent on 26 billion trading volume.

As for the Nasdaq the index was the biggest mover for the week. Based on technical analysis the index would need to break above 1665.75 in order to move higher. The index has been up trending for the past 4 weeks but needs to digest the move before moving higher. The Nasdaq opened at 1516.04 but moved much higher to end the week as the biggest gainer. The index ended the week trading at 1,621.87 up 76.67 or 4.96 percent on 11.2 billion volume.

As for the price of gold the index has been pulling back due to the rise in the price of the dollar as well as the rally in the stock market. Gold has been on a decline for the last 5 out of 7 weeks. The index is currently below its 5 and 10 week moving averages for now ending the week at $893.30 per ounce down $30.70 or 3.32 percent for the week.

On the oil front the Oil Index has been moving to the upside for the past 8 weeks. The index ended the week last week with a shooting star after moving as highs as $54.66 per barrel. This week the index ended trading with a doji candlestick pattern. A doji represents in decision in the price of a stock which means that the next move may be higher or lower going forward. In order for the oil index to move higher, the price of oil would need to break above $55 per barrel. To end the week oil ended trading at $52.13 per barrel up $0.13 or 0.25 percent after closing to end last week trading session at $52.38 per barrel.

By: Marlin Rolle

*** Please have a close look at the charts below ***

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