WizzWatch Weekly Newsletter

As the week came to an end in the stock market the Dow Jones Industrials, the Nasdaq and the S&P 500 all declined to end the week trading lower. The S&P 500 had its first monthly price decline ending several months of upside momentum. Personal spending fell for the first time in 5 months, consumer confidence also declined as 3rd quarter (GDP) Gross Domestic Product was better than expected. The Nasdaq , Dow Jones Industrials, and S&P 500 monthly bullish percent indices are all pointing lower as the Pro Shares Ultra Short Etf’s are turning to the upside after months of declines. The Dow Industrials saw no change in the direction for the month of October as the Nasdaq advanced 3.64%, followed by the S&P 500 up 1.98%. Across the board all sectors in the market were on the downside as financials, airlines, computer hardware, and precious metals moved lower.

The Dow Jones Industrial Average began the week trading at 9,972.33 but moved to a price low of 8,684.54 before ending the week trading slightly higher. As for now the index is trading below its 5 and 200 week moving averages but above its 10, 50, and 32 week moving averages. Downside support for the Dow Jones is at 8,912.55 with upside resistance In the 10,119.50 area. The top movers in the Dow 30 were (VZ) Verizon, (KFT) Kraft Foods, (PG) Proctor & Gamble as stocks such as (STX) Seagate Technologies, (AA) Alcoa, and (BAC) Bank of America moved lower. To end the week the Dow Jones Industrials closed at 9,712.73 down -253.45 points or -2.60 percent on heavier than average downside volume of 5.26 billion. The average weekly trading volume is 4.94 billion.

At the Nasdaq there was no escape from the fall in equities as the tech weighed index continued its price decline for the second week in a row. The Index is currently moving to the downside below its 5, 10 and 200 week moving averages, but above its 32, and 50 week moving averages. The Nasdaq has been on a decline for the past 2 trading weeks. The biggest movers in the Nasdaq 100 were (SYMC) Symantec Corp., (ORLY) O’Reilly Automotive, (VRTX) Vertex Pharmaceuticals, (AKAM) Akamai, and (CEPH) Cephalon as (APOL) Apollo Group, (ILMN) Illumina, and (FSLR) First Solar moved lower. The Nasdaq ended the week trading at 2,045.11 -109.36 -5.08% for the week on heavier than average weekly trading volume for the second week in a row. The average weekly trading volume for the Nasdaq Composite Index is 11.15 billion; the index ended trading on Friday with volume of 12.38 billion.

The Standard and Poors 500 also moved lower for the second straight week. The index began the week trading at 1,080.36 moved to a high at 1,091.71 before ending the week trading lower. The S&P 500 is now trading below its 5, 10 and 200 week moving averages for the first time since July. Downside support for the index is at 959.29 with upside resistance in the 1,101 area. The big movers in the S&P 500 this week were (GNW) Genworth Financial, (CVH) Coventry Health, (HRS) Harris Corp., (SYMC) Symantec Crop., and (ORLY) O’Reilly Automotive. To end the week the index closed at 1,036.19 -43.41 point or -4.02% on heavier than average downside trading volume of 23.88 billion. Average downside trading volume for the S&P is 21.77 billion.

In the Gold markets the index pulled back as the price of the dollar moved higher for the first time in several weeks. Upside resistance for the precious metal is at its all time price high at $1,070.70. Downside support for the index is at $956.91 per ounce. The Gold index is above all moving averages as it continues to move higher to the upside. If the price of the dollar continues to advance in the near term after months of declines we will see a pullback in the price of Gold going forward. As for now the index remains dominant making higher highs and higher lows as it continues to move to the upside. Gold ended the week trading at $1,045.70 down -9.50% or -0.90.

As for Crude Oil the index there was a decline in the index after reaching its 52 week price at $82.00 per barrel the week prior. The index had moved to the downside for the first time in 4 weeks after breaking above upside resistance in the $75 per barrel area. The index currently has downside support at $66.02 with resistance on the upside at its previous price high. Indicators are pointing lower in the week ahead so we may see oil continue to pullback but a confirmation of that move will be a break to the downside below its 5 and 10 week moving averages in the $75.70 area. To end the trading week oil closed at $77 per barrel -3.50 or -4.35 percent on the downside.

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