Wizzwatch Weekly Newsletter

As this week in the stock market came to a close, the Dow Jones Industrial Average, the Nasdaq and the S&P 500 all ended the week trading on the upside. Oil continued to move lower for the second week in a row ending the week trading at $73.64 down $1.47 or -1.96%. The (VIX) Volatility Index also known as the fear index pulled back -23.71% for the week relieving some of the fears of investors the week before as the index ended the week trading at 31.24. The (VIX) Volatility Index ended the week prior trading at $42.15. As for the price of gold there was a new all time high as the index moved to a new all time high at $1,249.30 before ending the week trading at $1,232.60 up $24.10 or +1.99%.

There has also been upside momentum coming into the price of the U.S. Dollar. The dollar has been getting stronger as the Euro continues to decline as it ended its session on Friday trading below $1.24 for the first time in 4 years. The month of May is the worst trading month for the EURO in a year. The pair fell for 8 of the last ten trading session as the trend remains in tact in the near term. The top sectors that too the market higher this week were the gold and silver index +4.03% followed by Airlines +1.13%, Insurance +0.55%, Telecommunications +0.39%, and Biotechnology +0.01%. The top stocks in the market this week were stocks such as (HAUP) Hauppauge Digital +281.55%, (BSMD) Biosphere Medical 66.67%, (SY) Sybase +63.51%, (AUTH) Authen Tec Inc. +41.52%, and (NXST) Nexstar Broadcasting Group +39.29%.

The Dow Jones Industrial Average began the week trading at 10,386.18 but moved to a price low in the 10,386.30 area but ended the week trading much higher. The index has been on the downside for the past 2 weeks and is poised to move higher in the week ahead. Downside support is currently at 9,951.80 with upside resistance at 11,258.01. The Dow Jones is above its 32 and 50 week moving averages but below its 5, 10, and 200 week moving averages. The top stock movers in the Dow 30 were (IBM) International Business Machines +3.91%, (PG) Proctor & Gamble +0.19%, (HD) Home Depot -0.26%, (WMT) Wal Mart Stores -0.29%, and (DTV) Direct TV Group -0.29%. The Dow Jones Industrials ended the week trading at 10,620.16 +239.73 or +2.31% on the upside on heavier than average volume of 4.98 billion. The average weekly trading volume for the Dow Jones Industrial Average is 4.45 billion.

At the tech heavy Nasdaq Composite Index there was also a move to the upside after 2 weeks of downside pressure. The index started the week trading at 2,365.97 before moving slightly lower to the downside before ending the week trading higher. The Nasdaq is currently trading above its 200, 50, and 32 week moving averages but below its 5, 10 week moving averages. The top stocks that helped to push the Nasdaq higher were (BIDU) Baidu.com +6.49%, (IACI) Inter Active Corp. +5.22%, (DISH) Echo Star Communications +4.66%, (LBTYA) Liberty Gold +2.04%, and (AKAM) Akamai Technologies +1.35%. Downside support for the index is at 2,150.92 with upside resistance in the 2,535.28 area. The Nasdaq ended the week trading at 2,346.85 +81.21 or +3.58% on heavier than average trading volume of 12.80 billion. The average weekly trading volume for the Nasdaq Composite Index is 12.11 billion.

The Standard and Poors 500 began the week trading at 1,122.27 and moved as high as 1,173.57 before ending the week trading slightly lower. The index has downside support in the 1,069.62 area with upside resistance at 1,219.80. The S&P 500 is currently above its 50, and 32 week moving averages but below its 5, 10, and 200 week moving averages. The biggest movers in the Standard and Poors 500 this week were (LM) Legg Mason +12.09%, (PCS) Metro PCS Communications +11.22%, (PWR) Quanta Services +8.88%, (S) Sprint Nextel Corp. +8.19%, and (NOVL) Novell, Inc. +7.55%. The index ended the week trading at 1,135.68 +24.80 or 2.23% higher on the upside on heavier than average trading volume of 24.09 billion. The average weekly trading volume for the S&P 500 is 21.40 billion.


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