For the week that passed there was a lot to be happy about as the market moved higher after weeks of downside pressure. All three major indices closed above their 5and 10 week moving averages. The Dow Jones Industrial Average, the Nasdaq Composite Index, as well as the Standard and Poors 500 all ended the week on the upside.
The volatility Index moved lower ending the week trading at 23.47 relieving some fears of a continued downturn in the market going forward. The U.S. dollar also moved lower against a basket of major currency pairs as it continued its fall for the 7th consecutive week in a row. The price of gold also pulled back for the 5th consecutive week in a row trading at $1,189.30 per troy ounce. The Gold Index is currently $75.70 away from its all time price high at $1,265.00. As for crude oil the index conitinued its advance moving higher to end the week trading at $78.98 per barrel up $2.76 or 3.62% for the week.
The Dow Jones Industrial Average began the week trading at 10,098.12 and moved to a low in the 10,007 area before ending the week trading higher. The index is above its 5, 10, and 50 week moving averages but below its 32 and 200 week moving average in the 11,071 area. The index has been below both its 5 and 10 week moving averages for the past 11 weeks before moving higher to the upside. Downside support is at 9,614.32with upside resistance at 10,594.16.
The top performers in the Dow 30 this week were (AXP) American Express +7.72%, (GE) General Electric +7.46%, (CAT) Caterpillar +6.96%, (UTX) United Technologies Corp. +6.79%, and (DD) Dupont +6.35%.
As the week came to an end the Dow Jones Industrial Average ended the week trading at 10,424.62 +326.72 or +3.24% on lighter than average upside trading volume of 4.22 billon. The average trading volume for the Dow Jones Indstrials is 4.32 billion.
The Nasdaq Composite Index also moved higher to the upside to end the week. The Nasdaq began the week opening in the 2,185 area and moved to a low in the 2,159.95 area before moving higher to the upside to end the week in positive territory. The index is currently above its 5, 10, 50 and 200 week moving averages but below its 32 week moving average. the 32 week moving average is in the 2,286.10 area with downside support in the 2,061.14 area. Upsie resistance for the tech weighed index is currently at 2,341.11.
The top price movers in the Nasdaq 100 this week were companies such as (GENZ) Genzyme +20.44%, (ADSK) Autodesk +12.99%, (JOYG) Joy Global +10.30, (WYNN) Wynn Resorts Ltd. +9.59%, and (SHLD) Sears Holdings corp. +9.00%. As the market came to a close the Nasdaq ended the week trading at 2,269.47 +90.42 or 4.15% higher on the upside on lighter than average trading volume of 10,5 billion. The average trading volume for the Nasdaq Composite Index is 11.2 billion.
As for the Standard and Poors 500 it also advanced to end the week trading higher on the upside. The S&P closed above its 5, 10 and 50 week moving averages but are below both the 50 and 200 week moving averages for now. The 50 week moving average is at 1,097.14 with the 200 week moving average at 1,212.33. Dowside support for the index is currently in the 1,010.91 area with upside at 1,131.23.
The top stopcks in the S&P 500 this week were (GENZ) genzyme +15.41, followed by (DV) devry +15.10%, (ETFC) E*trade Financial Corp. +7.57%, (MBI) MBIA, Inc. +6.93%, and (MUR) Murphy Oil Corp. +6.52%. The S&P 500 ended the week trading at 1,102.66 +37.78 or 3.55% higher on the upside. The average weekly trading volume for the index is 20.71 billion as the index closed on lighter than average trading volume of 19.76 billion.
By: Marlin Rolle
*** Please have a close look at the charts listed below ****