WizzWatch Weekly Newsletter

At the close of trading in the stock market this week there was a slight advance in the price of the Nasdaq Composite Index as the Dow Jones Industrial Average as well as the Standard and Poors 500 declined. All three indices have been on a huge run up in price since March of 2009. At some point and time the market will need to make a correction after so many months of upside momentum. Im not saying that the market will self destruct but as the major indices continue to advance they will correct themselves in a timely manner making gradual price declines in sideways consolidation patterns for 6 to 9 weeks before moving higher. The top industry groups that helped to keep the market slightly above ground were disk drives up 3.89%, oil services up 1.98%, transportation down -0.01%, followed by the internet index down 0.01% and the insurance index down 0.28%. The top stocks in the market were (ASYS) Ametech Systems, (XRA) Exeter Resource Corp., (DROOY) Durban Roodeport Deep, (SYNTA) Synta Pharmaceuticals, and (MDTH) Medcath Corporation.

The Dow Jones Industrial Average has been closing tightly for the past few weeks. Upside resistance is at 10,516.70 with downside support at 9,338.79. The index has been moving to the upside for several weeks since March of 2009. The index is currently above its 5, 10, 32, and 50 week moving averagees. The 200 week moving average is at 11,190.13 but has yet to move above it. All indicators are beginning to move lower and may be a sign that the huge price advance since March may soon come to an end. In order for the index to move higher from here there must be a price break above the 10,516.70 area. The top price movers in the Dow 30 this week were (STX) Seagate Technologies up 5.31%, (HPQ) Hewlett Packard Co. up 1.86%, (DIS) Walt Disney Co. up 0.38%, (KFT) Kraft Foods up 0.48%, and (MCD) McDonalds Corp. up 0.05%. The Dow Jones Industrials ended the week trading at 10,328.89 -142.61 or -1.36% on lighter than average downside volume of 4.23 billion. The average weekly volume for the dow industrials is 5.23 billion.

At the Nasdaq Composite Index there was an uptick in price as the index advanced to end the week trading on the upside. The Nasdaq has been on a run for 28 of the past 41 week. Upside resistance for the tech weighed index is at its 200 week moving average at 2,209.58. Downside support is at 1,998.90. The top movers in the Nasdaq 100 this week were (RIMM) Research In Motion up 10.79%, (NVDA) NVIDIA up 7.34%, (VRSN) Verisign up 7.24%, (RYAAY) Ryanair Holdings up 6.04%, and (STK) Seagate Technology Holdings up 5.31%. The index is currently above its 5, 10, 32, and 50 week moving average but below its 200 weeek moving average at 2,209.58. To end the week the Nasdaq closed at 2,211.69 up 21.38 points or 0.98% on volume of 10.58 billion. The average weekly trading volume is 10.61 billion.

The S&P 500 is above its 5, 10, 32 and 50 week moving average but below its 200 week at 1,238.23. A breakout in price above the 200 week moving average will be bullish going forward. For now the index has been closing tightly for the past 6 weeks. Upside resistance is at 1,133.50 with downside support at 1,009.20. The top price movers in the Nasdaq 100 were (ATI) Allegheny Technologies, (DRI) Darden Restaurants, (PCS) Metro PCS Communications, (RRC) Range Resources and (ETFC) E-Trade Financial Corporation. The S&P 500 ended the week trading at 1,102.47 down 3.94 points or -0.36% on lighter than average downside volume 19.42 billion. The average weekly volume for the S&P 500 is 21.01 billion.

In the world of precious metals we once again saw a decline in the price of the gold index. The index has been on a pullback for the past 3 weeks due to a surge in the price of the dollar against a basket of major currencies. The gold index began the week trading at $1,14.30 per troy ounce and moved as high as $1,114.00 per ounce before ending the week much lower. Gold has been on a huge price move advancing 16 of the past 22 weeks for a round the $900 per ounce area to an all time price high at $1,226.40 3 weeks ago. The index is above its 5, 10, 32, 50 and 200 week moving averages. The Gold Continouos Contract Index ended the week trading at 1,112.50 down $2.70 or -0.24%. The index also ended the week with a doji candlestick formation as wellas holding its 10 week moving average. WE may see a turn to the upside in the price of the index as wellas a move to the downside being that a doji represents in decision in the price of a stock or indices. WE may see the price of gold move above $1,142.00 per ounce or below $1,095.30 in the week ahead.

As for light sweet crude the oil index began the week trading at $71.70 per barrel and continued to move lower throughout the rest of the week. The index moved as low as $70.83 per barrel holding above its prior week low and its 32 week moving average at $70.81 per barrel. The index is currently below its 5, 10, and 200 week moving
averages due to a pullback in the price of oil as the dollar began to advance after months of declines. The dollar advance did not put a dent in the price of oil as it ran up in price as reports from the middle east stated that Iranian Military Tanks surrounded an oil well 280 miles south of Baghdad. To end the week crude oil closed at $74.42 per barrel up $2.47 or 3.43% on the upside.

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