WizzWatch Market Newsletter 04.13.09 – 04.17.09

The week that passed was a week that we continued to see the market move higher for the 5th consecutive week in a row. The Dow Jones Industrial Average, the Nasdaq, and the S&P 500 all ended the week trading higher. The Dow is up 7.9%, the Nasdaq is up 4.8% and the S&P 500 is up 5.2% for the year. Financials, banking, industrials as well as consumer discretionary stocks moved the market higher. The market rallied yet once again thanks to the outlook of Wells Fargo – WFC, reported a record in first quarter earnings that beat all analyst estimates, net income rose 50 percent. Bank stocks rallied after the news giving the bank index a jump to the upside. To end the trading week there were 34 new highs and 11 new lows in the entire stock market.

Many investors are thinking that the declines in the banking industry are now over. The trend of the market is down being that the market has been on a run for the past 5 weeks. We may see more downside than upside going forward. Keep your eyes on the ultra short ETF’s, gold as well as commodities going forward. The market technically speaking has not bottomed and we decline before going higher, we are still in a bear market.

At the Dow Jones Industrial Average the index is trading above its 5 and 10 week moving averages. Downside support on the Dow is at 7,556.61. The 50 week moving average is at 9,830.14 but the index would need to cross above the 9,500 area to turn positive and move higher after many months of declines. The index ended the week trading at 8,083.38 up 65.79 points or 0.82 percent to end the week on 6.1 billion trading volume.

Over at the Nasdaq the index had also been on a big run up for its 5th week in a row. The Nasdaq is trading above its 5 and 10 week moving average as it moves higher to end the week on the upside. The Nasdaq needed the week trading at 1,652.54 up 30.67 or 1.89% on 7.8 billion trading volume.

The Standard & Poors 500 index ended the week higher this week as it followed the Nasdaq and the Dow Jones Industrial Average into higher ground. All 3 major indices have rallied but may move lower in the short term after making higher highs and higher lows for the past few weeks. The S&P is up over 25% since its 12 year low in price on March 9th, the index ended the week trading at 856.56 up 14.06 or 1.67 percent on 19.5 billion trading volume.

In the gold markets we have been continuing to see the index move lower. The Gold Index has been on a pullback for the past 3 weeks as the market have been moving to the upside. The Gold Index is below its 5 and 10 week moving average but ended the week slightly above its 50 week moving average. The Index ended the trading week at $878.80 per ounce down $14.50 or -1.62 percent. Downside support on gold is at $868.82 per ounce going forward any moves below that number will take the price of gold much lower in the near term.

As for the Oil Index there has been continued upside movement in the index as it moves nonstop week after week. The index has been on a moving higher for the past 8 weeks from $ $37 per barrel to end the week at $54/69 per barrel. Crude oil is on a move due to smaller gains in inventories than expected. If the oil index moves above upside resistance at $56 per barrel we will see oil once again move higher going into the summer months. The oil index ended the week trading at $54.69 up $2.18 or 4.15 percent.


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