WizzWatch Weekly Newsletter

As the end of the first month of 2010 in the stock market comes to a close all three major indices closed on the downside. The Dow Jones Industrial Average, Nasdaq Composite and the S&P 500 all ended the week trading lower for the third consecutive week in a row. The dollar continues to move higher against a basket of currency pairs. This has been the worst month in the market in one year as 4th quarter gross domestic product rose 5.7% its highest rise since the 3rd quarter of 2003. The (VIX) Volatility Index has been moving on the upside but ended this week lower after a 50% pullback in price from its move the week prior. A price move in the (VIX) Volatilaty Index above 30 we will take the market lower. The Gold Index ended the week lower trading at $1,081.50 per troy ounce down $11.20 or -1.02% as the Oil Index continued its decline. The Oil Index ended the week trading at $72.89 per barrel down $1.65 or -2.21%. The top sectors this week were lead by Biotechnolgy up +0.69%, the Bank index up +0.30%, Insurance down -0.44%, S&P Healthcare down -1.03% and Pharmaceuticals down -1.27%. Out of 220 companies that reported earnings 78% have been above expectations but that did not help to push stocks higher.

The Dow Jones Industrial Average began the week trading at 10,175.10 but ended the week trading much lower after pulling back to a price low at 10,043.75 before ending the week slightly higher. The top movers in the Dow 30 were (C) Citigroup up +2.79% followed by (PG) Proctor & Gamble Co. up +1.52%, (HD) Home Depot up +1.41%, (BAC) Bank of America up 1.34%, and (WMT) Wal-Mart Stores up +1.04%. The index has been on a three week decline with downside support in the 9,740.91 area with upside resistance in the 10,729.81 area. The Dow Jones Industrial Average ended the week trading at 10.067.33 -1.05.65 or -1.04% on heavier than average downside volume of 5.25 billion. The average weekly trading volume for the Dow Jones is 4.96 billion.

The Nasdaq Composite Index could not hide from the bears as the bulls ran to hide as the tech heavy index continued its decline for the third straight week. The Nasdaq is currently above its 32 and 50 week moving averages but below its 5, 10, and 200 week moving averages. All indicators are pointing to another week of declines. Downside support for the index is at 1,922.55 with resistance on the upside in the 2,326.28 area. The top movers in the Nasdaq 100 this week were (GILD) Gilead Sciences up +5.60%, (AMGN) Amgen up +4.97%, (AMZN) Amazon.com up +4.24%, (ROST) Ross Stores up +3.56%, and LIFE) Life Technologies up 2.96%. The biggest loser in the Nasdaq 100 this week was (QCOM) Qualcomm down -16.48%. The index began the week trading at 2,220.29 but ended the week trading at 2,147.35 -57.94 points or -2.63% lower on heavier than average volume of 12.82 billion. The average weekly trading volume for the tech weighed index is 10.04 billion.

As the Dow Jones Industrials as well as the Nasdaq continued to decline for the third straight week they were both followed by the S&P 500 as it also continued to decline for the third week in a row. The top movers in the S&P 500 were (EK) Eastman Kodak Co. up +37.19% followed by (TLAB) Tellabs up 8.98%, (DV) Devry up 8.4%, (SHW) Sherwin Williams Co. up 7.52% and (GNW) Genworth Financial up 7.45%. The biggest loser in the index was (X) US Steel Group down -20.99%. The S&P is currently below its 5, 10 and 200 week moving averages with downside support in the 975.11. Upside resistance for the Standard and Poors 500 is in the 1,150.45 area. The S&P ended the week trading at 1,073.87 -17.89 -1.64% on heavier than average downside volume of 23.06 billion. The average weekly trading volume for the S&P 500 is 20.41 billion.

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