WizzWatch Market Newsletter 06.01.09 – 06.05.09

As we end the trading week to close the month of May and begin the month of June, all three major indices finished the week on the upside. The Nasdaq Composite Index, The Dow Jones Industrial Average and the Standard and Poors 500 all ended the week higher. As for the month the S&P 500 lead the way ending 5.31 percent on the upside, followed by the Dow Jones Industrials up 4.07 percent, and the Nasdaq up 3.33 percent.

The Dow Jones Industrial Average opened up the trading week at 8,275.33 but fell to a low of 8,226.90 before ending the week on the upside. The index has been moving in a sideways consolidation for the past three weeks between 8,200 and 8,500. The bulls and the bears are still on the battle field and as for now no one knows who the victor will be. The Dow is trading above its 5 and 10 week moving averages, but below its 50 and 200 week moving averages. The index has been on the upside for twelve of the past thirteen weeks. The Dow Jones Industrial Average ended the week trading at 8,500.33 up 223.01 points or 2.69 percent on below average trading volume of 6.09 billion.

The Nasdaq has been the laggard for the month losing against the Dow Jones Industrial Average and the S&P 500 as it continues to move higher. The index has been on a huge run for twelve of the past thirteen weeks but has also been moving in a sideways consolidation. The Nasdaq has been consolidating between 1,670 and 1,780 for the four consecutive weeks. The Nasdaq is above its 5 and 10 week moving averages but needs to break above the 1,801 area in order to move higher. The Nasdaq Composite ended the week trading at 1,774.33 up 82.32 points or 4.87 percent on lighter than average weekly volume of 8.92 billion. The average weekly trading volume for the Nasdaq Composite Index is 10.65 billion.

The Standard and Poors 500 was the biggest mover for the month up 5.31 percent. The index opened up the week at 887.00, but ended the week higher after pulling back earlier in the week to a low of 881.46. The S&P 500 has been moving in a sideways and needs to break above the 931 area to continue moving higher. The Standard and Poor 500 ended the week at 919.14 up 32.14 points or 3.62 percent higher, on 18.6 billion trading volume.

In the precious metals markets the Gold Index continues its surge higher. The Gold Index has been on a huge run up for the past five out of six weeks as the U.S. Dollar falls against other major currency pairs. The index is poised to move higher as it closes in on breaking the $1,000 area for the second time this year. The Gold Index moved as high as $1,007.70 before pulling back. The index came very close to taking out an all time high made in March of 2008 at $1,030.00. As for now the index is trading above its 5, 10, 50 and 200 week moving averages. The Gold Index ended the week trading at $979.30 per troy ounce up $21.90 or 2.29 percent for the week, the index is up $90.50 or 10.18 percent for the month.

As for the price of oil we continue to see the price of oil move higher after breaking out above $56 per barrel 4 weeks ago. Oil is now up $15.19 per barrel for the month or 29.71 percent. Oil will continue to move higher throughout the summer as the start of Hurricane season starts up. Terrorist attacks on oil facilities in the Middle East as well as tensions boiling in Asia over the nuclear threat by N. Korea may push oil higher in the near term. We will see higher prices at the pump going forward. There is a possibility that oil may move as high as $85 per barrel before the end of 2009. The Oil Index ended the week trading at $66.31 per barrel up $4.64 or 7.52%.

By: Marlin Rolle

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