WizzWatch Market Newsletter 06.29.09 – 07.02.09

As the week that passed came to an end the Dow Jones Industrial Average, and the Standard and Poors 500 pulled back as the Nasdaq edged higher. Telecoms, healthcare, and utilities moved higher as energy and financials turned to the downside.

The Dow Jones Industrials began the week trading at 8,538.52 but pulled back as low as 8,259.43 before ending the week slightly higher. The Dow has been on a pullback for the past 2 weeks after moving to the upside for the past 12 of 16 weeks. The index is currently trading below its 5, 32, and 200 week moving averages, but above its 10 and 50 week moving averages. As for now weekly downside support is in the 8,200 area. If downside support is broken, the index will head much lower in the near term. The Dow Industrials ended the week trading at 8,438.39 down 101.34 points or down 1.19 percent on lighter than average downside volume of 5.34 billion.

At the Nasdaq the index has been on the upside for the past 14 of 16 weeks as it continues to move higher. A few winners on the Nasdaq were stocks such as Bed Bath and Beyond and Dish Networks. The Nasdaq is currently above its 5, 10, 32, and 50 week moving averages but below its 200 week moving average. The index opened the trading week at 1,809.53 moved as low as 1,753.78, but ended the week trading slightly above the previous week closing price at 1,827.47. The Nasdaq ended the week trading at 1,838.22 up 10.75 points or 0.59 percent on the upside on heavier than average volume of 12.45 billion.

The Standard and Poors 500 ended the week on the downside for the second consecutive week. The big movers on the S&P this week stocks such as Lennar as well as Boston Scientific. The index started the week trading at 918.13 and moved as low as 888.86 before ending the week trading slightly higher. The index is above its 5, 10 and 50 week moving averages, but below its 50 and 200 week moving averages. Downside support for the S&P is in the 8,600 area. The index ended the week trading at 918.90 -2.33 or 0.25 percent on lighter than average downside volume of 20.9 billion.

As for the Gold Index there was an upside move after 3 weeks of declines. The index is below its 5 week moving average, but above its 10, 32, 50, and 200 week moving averages. Gold has been on an upside for 8 months and continues to move higher. The index hit a price high earlier in the year at $1,000 per barrel before pulling back. The Gold index ended the week trading at $939.90 per troy ounce up $5.40 or 0.58 percent.

The Oil Index declined for the second straight week after retreating from its 200 week moving average the week prior. The index is currently above its 5, 10, 32 and 50 moving averages, but below its 200 week moving average. Analyst predict that oil may move as high as $75 per barrel before the year ends but due to the summer driving season, threats to oil rigs, pipelines as well as hurricanes. Downside support for oil is at $62 per barrel. The oil index ended the week trading slightly above its 5 week moving average at $69.16 -0.86 or -1.23 percent for the week.

By: Marlin Rolle

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