For the week that was in the stock market there has been continued downside pressure as stocks retreated for the second consecutive week in a row. Factory orders fell the most in one year as non farm payroills fell by 125,000 in June. Historically the market turns to the downside every year between the month of May through October before moving higher.
The Dow Jones Industrial Average, the Nasdaq and the Standard and Poors 500 all fininished on the downside as the market continued to decline with no clarity of when the market may again move higher. This is a stock pickers market so therefore average everyday investors must go to cash in order to reap the benifits once the market turns to the upside.
There was no escape as sectors retreated to the downside across the board. The Gold index declined for the second week in a row to end the week at 1,211.60 -44.10 or -3.51%. After 3 weeks of upside momentum there was a pullback in the price of oil as the index ended the week trading at $72.19 -6.67 or -8.46%.
The (VIX) Volatility Index also known as the fear indicator moved its way to the upside showing that there may be more downside pressure to come in the week ahead. The (VIX) ended the week trading at 30.12 after moving as high as 37.38 earlier in the week. Investors will need to keep a close eye on the Volatility Index above the 37.50 area going forward. A move above the 37.50 area will take the market even lower as the bears continue to control the momentum of the market.
Phramaceuticals were down -1.90%, Utilities -2.87%, S&P Healthcare -3.22%, Oil Services -3.36% and N. American Telecommunications -3.63%, and Airlines down -6.51%. The top market movers for the week were (WAIN) Wainwright Bank & Trust +100.33%, (JAV) Javelin Pharmaceuticals +58.27%, (IDT) IDT Corporation +47.40%, (STST) Argon St. +37.91%, and (RDCM) Radcom +27.18%.
The Dow Jones Industrial Average has been on the downside for 7 of the past 10 weeks as it continues to decline. The index is currently below its 5, 10, 32, 50 and 200 week moving averages. Downside support for the index is at 9,614.32 with upside resistance in the 10,600 area.
There were no winners this week in the Dow 30 as all the stocks in the indices finished the week on the downside. (VZ) Verizon ended the week down -0.04%, followed by (JNJ)Johnson & Johnson -0.62%, (MCD) McDonalds -1.77%, (KO) Coca Cola -2.02%, and (PG) Proctor & Gamble Co. -2.05%.
The Dow Jones Industrial Average ended the week trading at 9,686.48 down 457.33 points or -4.51% on heavier than average downside volume of 4.64 billion. The average weekly trading volume for the indices is 4.4 billion.
At the Nasdaq Composite Index there was also a pullback as the index continued its price move lower for 7 of the past 11 weeks. Downside support for the tech weighed index is at 2,061.40 with upside resistance at 2,341.20.
The top movers in the Nasadaq 100 were (RYAA) Ryanair Holdings +2.80%, (TEVA) Teva Pharmaceuticals +2.77%, (FSLR) First Solar +1.08%, (BIIB) Biogen Idec -0.30%, and (JNPR) Juniper Networks -0.45%.
The Nasdaq ended the week trading at 2,091.79 down -1.31.69 or -5.92% on lighter than average downside volume of 11.31 billion. The average weekly trading volume for the Nasdaq is 11.71 billion.
As for the Stanadard and Poors 500 there was no where to run as it to declined for 6 of the past 10 weeks. Downside support for the index is at 1,010.90 with upside resistance at 1,131.25. The index is currently below its 5, 10, 32, 50, and 200 week moving averages.
The top movers in the S&P 500 were stocks such as (CF) CF industries +5.95%, (ESV) Ensco Plc. +5.41%, (DO) Diamond Offshore Drilling +5.05%, (AGN) Allergan +4.74%, and (FTI) FMC Technologies +3.51%.
The S&P 500 ended the week trading at 1,022.58 -54.18 or -5.03% on heavier than average downside volume of 21.92 biilion. The average weekly volume for the index is 21.93 billion.
By: Marlin Rolle
*** Please have a close look at the charts below ***