WizzWatch Market Newsletter 06.15.09 – 06.19.09

As for the week that passed, all three major indices ended the week slightly higher. The Dow Jones Industrial Average, the Nasdaq Composite Index and the S&P 500 all finished the week on the upside. The Nasdaq is up 17.87 percent for the year followed by the S&P 500 up 4.75 percent, and the Dow Jones Industrials up 1.27 percent. The top industry groups taking the market higher to end the week were Utilities up 4.30 percent, Computer Hardware up 3.61 percent and Oil Services up 3.41 percent. As for the bottom industry groups that movees lower were industries such as Airlines down -0.46 percent, Nasdaq Transports down -0.90 percent, and Insurance down -0.94 percent for the week.

The Dow Jones Industrial Average continued to move to the upside for 12 of the past 14 weeks. The Dow Jones is currently above its 5 and 10 week moving averages and is getting very close to crossing above it 50 week moving average at 9,109.90. The Dow Jones Industrials ended the week with a doji candlestick. Doji candlesticks represent indecision in the price of a stock or indices, therefore we may see the index move higher or lower in the week ahead. The Dow ended the trading week at 8,799.26 up +36.13 points or 0.41% on 5.06 billion trading volume, lighter than its average weekly trading volume at 6.65 billion.

The Nasdaq Composite Index has continued to move to the upside. The Nasdaq has been trending higher making higher highs and higher lows for the past 13 out of 14 weeks. All three indices have been in overbought territory but have continued to move higher. The Nasdaq is trading above its 5, 10 and 50 week moving average, upside resistance is at 1,896.95 and downside support is at 1,733.25. The Nasdaq started the week trading at 1,836.87 and moved as high as 1,879.92 before pulling back ending the week trading slightly below its weekly price high. The Nasdaq ended the week trading at 1,858.80 up +9.38 points or 0.51 percent higher on volume of 10.95 billion, slightly higher than its average weekly at 10.71 billion.

As for the Standard and Poors 500 the index has continued to move higher to end the week. The index has been moving on the upside for the past 12 out of 14 weeks. Upside resistance for the S&P is currently in the 975 area. A move above 975.50 will take the S&P much higher in the near term. The index is currently above its 5 and 10 week moving averages, but slightly below its 50 week moving average at 971.73. The S&P 500 ended the week trading 946.21 up +6.12 points or 0.65 percent on 19.75 billion trading volume lighter than the average weekly at 22.69 billion.

In the gold markets this week, the index pulled back for the second week in a row. Gold started the week trading at 956.00, moved as high as 965.50 before ending the week lower. The index fell below its 5 week moving average for the first time in 5 weeks. Downside support for the gold index is currently at 888.71. The Gold Index ended the week trading at $939.20 per troy ounce down $15.50 or -1.62 percent.

On the oil front light sweet crude ended the week trading higher for 12 of the past 15 weeks closing in on 8 month highs. The index crossed through the 50 week moving average at $70.92 and is very close to breaking out above its 200 week moving average at $74.75.

Analysts predicted that oil may end the year trading at $75.00 per barrel. If the oil index continues to move higher breaking above its 200 week moving average we may see oil end the year above $100 per barrel. On June 11, 2009 the (IEA) International Energy Agency in Paris increased its global oil demand prediction for the first time in 10 months. The IEA increased its oil demand forecast by 120,000 barrels per day to 83.3 million barrels per day. Eleven (OPEC) Organization of the Petroleum Exporting Countries members increased production by 118,000 barrel per day to 25.9 million per day excluding Iraq.

Summer driving season is here along with hurricane season as well as the terrorist threats to oil facilities, and tensions building in N. Korea. Crude oil started out the week trading at $68.32 before moving as high as $73.90 per barrel before ending the week trading at $72.75 up $4.31 or 6.30 percent.

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