WizzWatch Market Newsletter 07/13/09 – 07/17/09

As the week ended and the stock markets came to a close all three general market indices turned lower ending the week on the downside. The Dow Jones Industrial Average as well as the S&P 500 have been on a decline for the past four weeks in a row. As for the Nasdaq Composite Index it also declined to end the week lower three out of the past four weeks. The biggest losers in the market were real estate investment trust also know as REITs, networking, metals, telecommunications and chemicals.

The Dow Jones Industrial Average started out the week trading at 8,279.30 moved as high as 8,327.97 but ended the week trading much lower. The Dow is below all major moving averages, with current downside support at 8,153.85. A move below support will take the index much lower. We may see the index pullback to levels not seen since February of this year in the 6,500 area. The Dow Industrials ended the week trading at 8,146.52 -1.34.22 or 1.62% on lighter than average downside volume of 5.2 billion.

Over at the Nasdaq Composite Index the tech weighed index has been on a decline for three of the past four weeks as the market continues its decline. The Nasdaq moved below its 10 week moving average for the first time in 17 weeks as it continued its downside momentum. As for now the index is below its 5, and 10 week moving averages, but above its 32 and 50 week moving averages. Current downside support for the Nasdaq is at 1,745.54 any price move below support will take the Nasdaq much lower. As for now the index is holding slightly above its 32 week moving average as all indicators point to a continued downside move in the week ahead. The Nasdaq ended the week trading at 1,756.03 -40.49 -2.25% on slightly lighter than average downside volume of 9.99 billion. The average weekly volume for the Nasdaq Composite Index is 10.6 billion.

The Standard and Poors 500 couldn’t hide from the threat of another pullback as it continued to slide to the downside for the fourth consecutive week in a row. The index started the week trading at 894.27, moved to a high of 898.72 before ending the trading week on the downside. As for now the S&P is currently below its 5, 10, 50 and 200 week moving averages. All indicators point to another week of declines in the week ahead as the moving average convergence divergence and on balanced volume continued to turn to the downside. Downside support for the Standard and Poors 500 is at 859.51 for now. The S&P ended the trading week at 879.13 -17.29 -1.93% on lighter than average weekly volume of 19.8 billion.

As for the Gold Index there has been a decline in price for the past 4 out of 5 weeks. The index broke through its 5 and 10 week moving averages for the first time in 8 weeks as it continued to decline. The Gold index is poised to move higher in the near term but it all depends on the direction of the U.S. Dollar in comparison to a basket of major currencies worldwide. The Gold Index started the trading week opening at $931.50 before moving to a price high of $932.70 but ended the week much lower. The index is poised to move higher as it currently sits slightly above its 32 week moving average with downside support at 872.95. The Gold Index ended the week trading at $913.00 per troy ounce down -$16.50 or 1.78%.

On the oil front the index continued where it left of the week prior as it continued to move lower for the fourth consecutive week in a row. The index failed to remain above its 10 week moving average breaking below it for the first time in 19 weeks. Oil is currently below its 5, 10 , 50 and 200 week moving averages, but above its 32 week moving average. Downside support for oil is currently at $52 per barrel. Oil ended the week trading at $60.88 per barrel down $5.85 or -8.77% for the week.

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