WizzWatch Weekly Newsletter

As this week came to an end in the stock market all three major indices declined as stocks sold off to end the week trading lower. This weeks pullback was the biggest since March of 2009. The move to the downside not only hurt the general markets weekly performance but it's yearly performance. The Dow Jones Industrial Average, The Nasdaq and the S&P 500 all moved lower for the second week in a row. The Nasdaq is down -2.81% for the year 2010 followed by the Dow down -2.45%, and the S&P 500 down -2.09%. Financial stocks were one of the worst performers as President Barack Obama proposed stricter new rules limiting the risk banks make as well as limits to the size of banks.

There were no sectors in the market that escaped the sell off. The top performing sectors for the week were all on the downside. The Philadelphia Bank Index declined -1.78%, followed by the Nasdaq Transportation Index down -2.82%, the Biotechnology Index down -3.64%, Pharmaceuticals down -3.70% and the Nasdaq Insurance Index down -3.77%. There was also a pullback in the Gold Index as it closed to end the week trading at $1,092.70 per ounce down $38.20 or -3.38%. The Oil Index also declined $3.83 or -4.89% to end the week trading at $74.54 per barrel. Downside support for the oil index is at $66.14 per barrel with upside resistance at $83.95 per barrel. Next week there will be 135 companies reporting earnings, stocks such as (AAPL) Apple, Inc., (AKS) AK Steel, and (AMGN) Amgen to name a few. (AAPL)Apple, Inc. ended the week trading at $197.75 down -8.18 or -3.97% on heavier than average volume of 101.02 million.

The Dow Jones Industrial Average started out the holiday shortened week trading at 10,608.37. The Index pulled back to a price low at 10,729.89 before ending the week slightly higher. The Dow Jones Industrial's have been on a huge price run up since March of 2009. Many analysts have said in the past that the market has moved too far too fast after the first 2 months of its price advance but the index continued to move higher. None of them couldnt figure out when the big decline will finally ahppen allowing the market to digest it's huge price run. The Dow has been on the upside 29 of the past 46 weeks and has broken through it's 10 week moving average to the downside for the first time since June of 2009. The index is currently above its 32 and 50 week moving averages but below its 5, 10, and 200 week moving averages. Downside support for the index is at 9,693.17 with upside resistance at 10,811.20. The top movers in the Dow 30 this week were (STX) - Seagate Technologies up +1.32%, (MCD) McDonalds -0.14%, (PG) Proctor & Gamble -1.58%, (WMT) Wal-Mart -2.02% and (GE) General Electric Co. -2.60%. The Dow Jones Industrial Average ended the week trading at 10,172.98 -436.67 or -4.12% on heavier than average trading volume of 4.79 billion, its average trading volume is 4.13 billion.

At the tech weighed Nasdaq Composite there was also a decline taking the index lower breaking below its 10 week moving average. The index is below its 5, 10, and 200 week moving averages, but above both its 32, and 50 week moving averages. Upside resistance for the Nasdaq is at 2,326.28 with downside support at 2,077.45. The top movers in the index as the week came to an end were (ISRG) Intuitive Surgical +9.50%, (APOL) Apollo Group +1.54%, (EBAY) eBay +1.38%, (STX) Seagate technology Holdings +1.32% and (CEPH) Cephalon +0.28%. The Nasdaq ended the week trading at 2,205.29 -82.70 or -3.61% on heavier than average volume of 10.09 billion. The average weekly trading volume for the Nasdaq is 9.84 billion.

The Standard and Poors 500 declined for the second week in a row following the Dow Jones Industrials and the Nasdaq lower. All indicators are pointing to a lower move in the index in the week ahead. The (MACD) Moving Average Convergence Divergence, the (RSI) Relative Strength Indicator as well as (ONV) On Balanced Volume are all turning to the downside. The S&P 500 began the week trading at 1,136.03 and moved to a price low at 1,090.18 before closing to end the week slightly above its price low. The index has been on a huge advance in price since making price low in March of 2009 at 666.79. As for now downside support is at 1,041.70 with upside resistance at 1,150.45. The index is currently above its 32, and 50 week moving averages but below its 5, 10, and 200 week moving averages. The top movers in the S&P 500 this week were (ISRG) Intuitive Surgical +9.50%, (HBAN) Huntington Bancshares +9.07%, (CMA) Comerica +7.81%, (KEY) Key Corp +7.25%, and (EL) Estee Lauder +6.36%. To end this week in trading the S&P 500 closed at 1,091.76 -44.27 or -3.90% on heavier than average volume for the second week in a row. The average weekly trading volume for the S&P 500 is 18.57 billion.

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