WizzWatch Market Newsletter 06.22.09 – 06.26.09

To end this week of trading all three major indices declined after weeks of upside momentum. The Dow Jones Industrial Average, the Nasdaq Composite, and the Standard and Poors 500 all ended the week on the downside making this past week its first losing week in five. The top three industry groups for the week were the S&P Healthcare Index up 5.08 percent, followed by Pharmaceuticals up 3.99 percent, and the Airline Index up 3.83 percent. Dow Jones Chemicals, Telecommunications and the Oil Index were the bottom three groups for the week.

The Dow Jones Industrial Average started out the week trading at 8,798.50 before pulling back to lows in the 8,461 area. The index was the biggest loser for the week out of three major indices. The Dow ended the week slightly below its 5 week moving average at 8,575.95 for the first time since March of this year. Downside support for the Dow Industrials is currently at 8,169.85, a break of support will take the index much lower. We may see a test of previous low a set in March at 6,469.95. The Dow has been on the upside for 12 of the past 15 weeks. The index has been in overbought territory for several weeks but continued to move higher. The index ended the week trading at 8,539.73 -259.53 or -2.05 percent on 5.88 billion trading volume.

The Nasdaq Composite Index also retreated after weeks of upside momentum. The Nasdaq has been on a huge run up in price making higher highs and higher lows for thirteen of the past 15 weeks. The Nasdaq is currently above its 5, 10, 32, and 50 week moving averages but below its 200 week at 2,229.52. The index opened the week trading at 1,837.94 and pulled back to a low of 1,785 slightly below its 5 week moving average at 1800.41. The Nasdaq ended the week trading at 2,229.52 down -31.33 points or -1.69 percent on heavier than average trading volume of 11.83 billion.

The Standard and Poors 500 pulled back this week for the first time in five weeks. The index has been on the upside moving in tandem with the Dow Jones Industrials for 12 of the past 15 weeks. The index opened up the trading week at 942.05 but ended much lower closing slightly below its 5 week moving average at 922.73. The index is currently above its 10 and 32 week moving averages but above its 5, 50 and 200 week moving averages. Relative strength is turning to the downside followed by on balanced volume as well as the moving average convergence divergence. Downside support is currently in the 855.60 area for now. The S&P 500 ended the week trading at 921.23 down 24.98 or -2.64 percent on 21.8 million volume higher than average.

On the gold front the index has been on a 3 week decline. The Gold Index pulled back due to the upside momentum in the price of the U.S. Dollar. As for now the dollar has been on a decline to end the week so we may see the price of Gold move higher during next week’s trading session. The index is below its 5 week moving average but above its 10, 32, 50, and 200 week moving averages. The Gold Index ended the week trading @ 934.50 -4.70 or -0.50 percent.

As for the oil the index declined for the first week in the past 5 weeks. The index opened the week at $72.89 per barrel moving to a high of $73.42 before pulling back ending the week much lower. The index is currently above its 5, 10, 32, and 50 week moving averages but slightly below its 200 week moving average. In order for the index to move higher oil must cross above its 200 week moving average at $74.75. Oil ended the week trading at $70.02 down $2.73 or -3.75 percent.

By: Marlin Rolle

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