As the European debt crisis continues stocks post their biggest drop since May as home sales fell to record lows. It has been 68 days and oil continues to flow in the Gulf of Mexico and (BP) faces criticism as it loses its battle of public opinion and the financial sector faces strict regulations as all three major indices finished the week on the downside.
The Dow Jones Industrial Average, the Nasdaq and the S&P 500 all ended the week in the red. The S&P 500 fell 4 consecutive days in a row. The price of gold moved lower as the oil index moved to the upside. There was also a move to the upside in the (VIX) volatility index as it’s ended the week at 28.53c, O its longest streak in seven weeks. A break above the 29.76 area will take the index much higher as the sell off continues.
The top market movers for the week were (ADG) Allied Defense +66.38%, (DLTR) Dollar Tree +49.99%, (BVF) Biovail Corporation +33.84%, (LBTR) Lightbridge Corporation +30.92%, and (SUPG) Supergen, Inc. +29.02%. As for the top sectors in the market this week there was only one on the upside. The Gold and Silver Index ended the week up +1.94%, followed by insurance -0.83%, Pharmaceuticals -0.88%, Biotechnology -0.98% and the Bank Index -1.58%.
At the Dow Jones Industrial Average the index began the week trading at 10,452.46 and moved slightly higher to the upside before ending the week on the downside. The index has been up 3 of the past 9 weeks as it’s continues to move lower. The Dow Jones Industrial Average is below its 5, 10, 32, 50 and 200 week moving averages with downside support at 9,757.20 and upside resistance at 11,258.01.
The top stocks in the Dow 30 this week were (MRK) Merck & Co. +2.31%, J.P. Morgan Chase & Co. +1.44%, (AXP) Amercian Express +0.16%, (JNJ) Johnson & Johnson -0.73% and (VZ) Verizon -1.75%. The Dow Jones Industrials closed to end the week trading at 10,143.81 down -306.83 points or 2.94% for the week on heavier than average downside volume of 4.56 billion. The average weekly trading volume for the index is 4.45 billion.
The Nasdaq Composite also moved to the downside as the tech weighed index fell for 6 of the past 9 weeks. The index began the week trading at 2,341.11 but finished lower as the week came to an end. The Nasdaq is currently below 5, 10, and 32 week moving averages but above its 50 and 200 week moving averages. The index has been moving in a sideways consolidation for the past 5 weeks. Upside resistance is at 2,535.28 with downside support at 2,139.46.
The top movers in the Nasdaq 100 this week were (WYNN) Wynn Resorts +2.51%, (MRK) Merck & Co. +2.31%, (CELG) Celgene Corp. +2.17%, (SRCL) Stericycle +1.13%, and (MICC) Millicom Int'l Cellular +1.02%. The Nasdaq Composite Index closed to end the week trading at 2,223.48 -86.32 or -3.74% on volume of 11.39 billion. The average weekly trading volume for the Nasdaq is 11.75 billion.
As for the Standard and Poors 500 there was no place to hide as it to moved lower. The S&P 500 started the week trading at 1.122.79 and moved as high as 1,131.23 before ending the week on the downside. Upside resistance is in the 1,219.80 area with downside support at 1,042.17. This has been the longest losing streak for the Standard and Poors 500 in 7 weeks.
The top stock in the S&P 500 this week were (CF) CF Industries +5.64%, (JBL) Jabil Circuit +4.73%, (DFS) Discover Financial Services +3.79%, (MCO) Moody's Corp. +3.77%, and NEM) Newmont Mining Corp. +3.68%.
As the week came to and end the S&P 500 closed at 1,076.76 -40.75 or -3.65% on the downside on lighter than average downside volume of 20.71 billion. The average weekly trading volume for the S&P 500 is 21.54 billion.
By: Marlin Rolle
*** Please have a close look at the charts below ***