Wizzwatch Weekly Newsletter

The stock market took a beating this week and continued its move to the downside as all three major moving averages moved lower. The Dow Jones Industrial Average, the Nasdaq and the Standard and Poors 500 declined to end the week on the downside. The move lower was due to concerns in Europe as the debt crisis moved from Greece to Hungry. The economic concerns in Hungry took a toll on the market as the week came to an end.

The Volatility Index also known as the fear index moved higher to the upside as the market sold off ending the week at 35.48 up 10.63%. A price move above the 40.10 area will take the volatility index much higher. There was heavy selling across the board into the close of trading to end the week.

Tensions between North and South Korea have also put pressure on the market. Crude oil had its biggest fall in four months as it ended the week trading at $71.80 per barrel down $2.17 or -2.93%. The price of gold moved slightly higher as the index ended the week trading at $1,219.80 per troy ounce up $5.30 or +0.44%. The gold index is $29.50 away from a making an all time price high above $1,249.30 that was made the month prior. There was also a continued up swing in the price of the U.S. dollar as it continued to move higher as the Euro dollar moved below $1.20 for the first time since March of 2006.

The Dow Jones Industrial Average began the week trading at 10,133.94 but continued its slide to the downside moving to a low at 9,889.98 before ending the week trading slightly higher. The index has been on a decline for 5 of the past 6 weeks. The index is currently below its 5, 10, 32, 50, and 200 week moving averages. This is the first time that the index has broken below its 50 week moving average since it broke above the moving average line back in July of 2009.

The top price movers in the Dow 30 were (STX) Seagate Technology +4.71%, (DTV) Direct TV Group +1.17%, (DIS) Walt Disney Co. +1.05%, (HPQ) Hewlett Packard Co. +1.03%, and (IBM) International Business Machines +0.76%. As the week came to an end, the Dow Jones Industrials closed to end the week trading at 9,931.97 -204.66 or -2.02% on lighter than average downside volume of 3.28 billion. The average weekly trading volume for the index is 4.53 billion.

At the tech weighed Nasdaq Composite Index there was a move to the downside after the index moved slightly higher the week prior. The Nasdaq began the week trading at 2,244.79 and moved to a price low in the 2,212.30 area before ending the week trading higher to the upside. The index is currently above its 50 and 200 week moving averages but below its 5, 10, and 32 week moving averages.

The top movers in the Nasdaq this week were stocks such as (RYYAY) Ryanair Holdings +5.65%, (AKAM) Akamai Technologies +5.49%, (AMGN) Amgen +4.94%, (ROST) Ross Stores +4.56%, and (LCRX) Lam Research Corp. +3.12%. Downside support for the Nasdaq is at 2,185.75 with upside resistance in the 2,535.28 area. The Nasdaq ended the week trading at 2,219.17 -37.87 or -1.68% on lighter than average downside volume of 8.94 billion. The average weekly trading volume for the Nasdaq Composite Index is 12.04 billion.

The Standard & Poors 500 continued its slide to the downside for 4 of the past 6 weeks. The S&P 500 fell to its lowest price level since February 8, 2010. The index is now below its 5, 10, 32, 50 and 200 week moving averages. Downside support for the S&P 500 is at 1,065.79 with upside resistance at 1,219.80.

The top movers in the S&P 500 this week were (SWN) Southwestern Energy Co. +10.87%, Chesapeake Energy Corp. +7.83%, Range Resources Corp. +7.45%, (WLP) Wellpoint Health Networks +5.54%, and (AKAM) Akamai Technologies +5.49%. The S&P 500 began the week trading at 1,087.30 and moved to a price low in the 1,060.50 area before ending the week trading much lower. The index ended the week trading at 1,064.88 down -24.53 points or -2.25% on lighter than average downside volume of 17.61 billion. The average weekly trading volume for the index is 21.96 billion.

By: Marlin Rolle

*** Please have a close look at the charts below ***