As the week came to a close in the stock market all three major moving averages moved to the downside as the bears continued to take the market lower. The Dow Jones Industrial Average, the Nasdaq as well as the S&P 500 tumbled to end the week with across the board declines.
There was also a pullback in the price of the U.S. Dollar for the sixth consecutive week. The U.S. Dollar continued its decline as the Euro continued its advance to end the week trading at $1.2933/36. The $USD/JPY ended the week trading at 86.65/69, and the GBP/USD ended trading at $1.53.04/07. Financials also took a beating the financial reform bill was passed by congress on Thursday and Bank of Amercia said that the new regulations will cost the bank billions.
The oil index ended the week trading at $76.22 per barrel -0.88% as the price of gold fell for the fourth straight week to end the week trading at $1,193.00 per barrel down -18.40 or -1.52%. As for now this is now a stock pickers market and regular everyday investors may need to get out of the markets and go to cash until the market turns.
The top movers in the market this week were companies such as (VOCL) Vocal Tec Communications +150.01%, (HSWI) HSW International +98.31%, (LACO) Lakes Gaming +61.36%, (NTY) NBTY , Inc. +50.56%, and (TELOZ) Tel Offshore Trust up +50.01%. The top sectors in the market this week were networking +3.88%, transportation +1.61%, computer hardware +0.31%, internet +0.19%, and airlines +0.16% as banks, gold, and oil services moved to the downside.
The Dow Jones Industrial began the week trading at 10,199.24 but moved to a low in the 10,079.58 area before ending the week trading slightly higher to the upside. 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 at 11,077.33.
The top movers in the Dow 30 were (HPQ) Hewlett Packard +1.14%, (VZ) Verizon +0.76%, (STX) Seagate Technology Holdings +0.64%, (CAT) Caterpillar +0.14%, and (MCD) McDonalds +0.01%. The index ended the week trading at 10,009.90 -100.13 or -0.98% on lighter than average downside volume of 4.30 billion. The average weekly trading volume for the Dow Jones Industrial Average is 4.33 billion.
At the Nasdaq there was also a pullback in the index after moving higher to the upside the week prior. The Nasdaq has been on a continued decline since breaking below its 5 week moving average during the last week of April 2010. The top mover in the Nasdaq 100 were (EXPD) Expeditors +7.12%, (EXPE) Expedia +6.48%, (CHKP) Check Point Software +6.09%, (WCRX) Warren Chilcott +4.30%, and (FLEX) Flextronics +4.07%.
The Nasdaq is currently below all of its major moving averages. The index is below its 5, 10, 32, 50 and 200 week moving averages as the market continues to move lower. Downside support for the tech weighed index is at 2,061.14 with upside resistance in the 2,341.11 area. The Nasdaq ended the week trading at 2,179.05 -17.40 or -0.79% on lighter than average downside volume of 10.46 billion. The average weekly trading volume for the Nasdaq is 11.27 billion.
The Standard and Poors couldn’t hide as it too ended the week trading to the downside. The S&P 500 is now below it 5, 10, 32, 50 and 200 week moving averages with downside support in the 1,010.91 area. Upside resistance is in the 1,131.23 area as the market may again move lower in the week ahead.
The top stock movers in the S&P 500 were (MON) Monsanto Co. +9.77%, (TLAB) Tellabs +8.33%, (MOT) Motorola +7.31%, (EXPD) Expeditors +7.12% and (ETFC) E*trade Financial Corp. +6.75%. To end the trading week the S&P 500 closed at 1,064.88 -13.08 or -1.21% on lighter than average downside volume of 19.41 billion. The average weekly trading volume for the index is 20.81 billion.
By: Marlin Rolle
*** Please have a close look at the charts below ***