WizzWatch Market Newsletter 07/06/09 – 07/10/09

As the shortened week came to a close in the stock market, all three major indexes ended the week on the downside. The Dow Jones Industrial Average ended the week down -1.87 percent, the Nasdaq Composite Index down -2.27 percent and the Standard and Poors 500 down -2.45 percent. The Insurance, Disk Drive and Airline index closed to end the week as the industry leaders, but were all down ending the week in the red. Oil Services, Biotechnology and the Dow Jones REIT Index ended the week as the biggest losers.

The Dow Jones Industrial Average ended the week on the downside for the third consecutive week in a row. The Dow is below its 5, 10, 32, and 200 week moving averages. The Dow finally crossed below its 10 week moving average this week for the first time since the middle of May 2009. If the index continues to move below downside support at 8,175.10 we may see the Dow Industrials pullback to test the lows that were made in the 6,469.95 area. All indicators are turning to the downside for now but on lighter than average downside volume. The Dow ended the week trading at 8,280.74 -157.65 -1.87 percent on 1.65 billion trading volume.

The Nasdaq Composite was the second biggest loser to end the week on the downside as stocks such as Apple, Dell, Sears Holdings, Amazon, Baidu and Google. The tech weighed index pulled back ending the week on the downside after ending the prior week higher. The Nasdaq is currently below its 5 and 200 week moving averages with its first downside support level at 1,777.51. Major downside support is currently at 1,608.03 as upside resistance remains at 1,896.95. The Nasdaq is currently moving in a sideways consolidation between 1,750 and 1,865 above its 10, 32, and 50 week moving averages. The Nasdaq ended the week trading at 1,795.52 -41.70 -2.27 percent on 7.92 billion trading volume. The average weekly trading volume for the Nasdaq Composite Index is 10.7 billion.

The Standard and Poor 500 ended the trading week as the biggest loser of the three major indices. The index ended the week on the downside for the third consecutive week in a row tumbling below it 10 week moving average. The S&P is also below its 5, 32 and 200 week moving averages; this is the first time the index moved below its 10 week moving in several weeks after reaching multi year lows in the 666.79 area. Downside support for the S&P 500 is at 860.04 as all indicators point to a lower week ahead. The index ended the week trading at 896.42 -22.48 or -2.45 percent on lighter than average volume of 14.42 billion.

The Gold Index moved lower to end the week on the downside. As the market moved lower the Gold Index moved lower due to the change of direction in the price of the dollar. The index started the week trading at $940.20 per troy ounce, the index moved as low as $923.60 before ending the week much higher. The index is currently trading below its 5 and 10 week moving averages, but above its 32, 50 and 200 week moving average. Downside support for gold is at $905.44 with upside resistance at $999.80 per troy ounce. If the market continues to move lower we may see Gold move higher in the near term. The Gold Continuous Contract ended the week trading at $929.50 per troy ounce down $10.40 or -1.11 percent to end the week.

After moving to the upside for 13 of 16 weeks the Oil Index has been on a pullback for the past three. The supply for oil is high but demand has weakened pulling the price of oil lower for now. Oil may still move higher in the near term as we roll through the summer months depending on the weather conditions due to hurricanes, threats of terrorist attacks to oil facilities in the Middle East as well as Nigeria. The first downside support level for oil is currently at $64.50 per barrel as major downside support is currently at $51.95 per barrel. As for now all indicators are pointing to a continued downside move in the price of oil in the week to come. Oil ended the week trading at $66.73 per barrel down -$2.43 or -3.51 percent.

By: Marlin Rolle

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