WizzWatch Weekly Newsletter

As the third week of 2010 came to a close, the Dow Jones Industrial Average, the Nasdaq and the Standard and Poors 500 all ended the week on the downside. The oil index moved lower after reaching a high in price at $83.95 per barrel but ended the week trading lower closing at $78.37 per barrel. The price of gold also pulled back ending the week trading at $1,130.90 per troy ounce down $6.40 or -0.56% for the week. The price of the U.S. Dollar also declined for the second week in a row against a basket of major currencies. The top sectors in the market this week were healthcare up +1.07%, computer hardware up +0.96%, pharmaceuticals up +0.72%, biotechnology up +0.59%, and networking up +0.23%. The big sector losers were gold and silver, the oil index, telecommunications, disk drives along with the commodity related equity index. The oil index moved lower after reaching a high in price during the week at $83.95 per barrel but ended the week trading on the downside closing to end the week trading at $78.37 per barrel.

The Dow Jones Industrial Average started out the trading week at 10,620.31 but moved slightly lower as the week came to an end. The Dow is currently above its 5, 10, 32, and 50 week moving averages but below its 200 week moving average in the 11,178.82 area. Downside support for the Dow Jones industrial Average is at 10,426.30 with resistance on the upside in the 10,724.00 area. The top movers in the Dow 30 this week were (MRK) Merck & Co. up +4.31%, (PFE) Pfizer up +3.51%, (KFT) Kraft Foods up +2.71%, (AXP) American Express Co. up +2.22%, and (IBM) International Business Machines up +1.78%. The Dow ended the week trading at 10,609.65 down -8.54 or -0.08% on heavier than average downside volume of 4.64 billion. The average weekly trading volume for the Dow Jones Industrial Average is 4.06 billion.

At the Nasdaq Composite Index there was a decline in the index after it made a new price high the week prior. The Nasdaq began the week trading at 2,324.78 and moved to as high as 2,326.28 before ending the week much lower. The Nasdaq is currently above its 5, 10, 32, 50 and 200 week moving averages. Upside resistance for the index is in the 2,326.30 area with downside support at 2,228.85. The top movers in the Nasdaq 100 this week were (BIDU) Baidu up +16.75%, ILMN – Illumina up +15.38%, (INFY) Infosys Technologies up 5.67%, (MRK) Merck & Co. up +4.31%, and (WYNN) Wynn Resorts up +4.17%. The Nasdaq ended the week trading at 2,287.99 down -29.18 or -1.26% on heavier than average downside volume of 11.65 billion. The average weekly volume for the Nasdaq is 9.81 billion.

As for the Standard and Poors 500 there was also a decline in the index as it moved slightly lower after weeks of upside momentum. The index has been on the upside 28 of its pass 45 weeks and it continues to move higher. Downside support is at 1,110.96 with upside resistance in the 1,1151.00 area. The S&P 500 is above its 5, 10, 32, and 50 week moving averages but below its 200 week moving average at 1,235.02. The top movers in the S&P 500 were (SVU) Supervalu up +10.84%, (WYN) Wyndham Worldwide Corp. up +10.68%, (EK) Eastman Kodak Co. up +9.93%, (TWC) Time Warner Cable up +9.31% and (MOV) Movado Group up +8.63% as stocks like (PCS) Metro PCS Communication declined -12.10%.

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