As we put the first week of September behind us the stocks market may be poised to move higher in the coming months as it declined to move higher for 3 of the past 5 months. The Dow Jones Industrial Average, the Nasdaq Composite Index as well as the Standard and Poors 500 all ended the week trading higher.
The price of a barrel of crude oil moved lower to end the week trading on the downside at $74.86 down $0.31 or 0.41% as the gold index continued to head closer towards a new high in price. The gold index hit a new high in price 11 weeks ago at $1,262.20 per troy ounce but failed to move higher and is now on the verge of breaking out into new highs in price once again as it ended the week trading at $1,247.00 up $9.10 or 0.74% higher.
The top market movers this week were companies such as (REDF) Rediff.com +51.29%, (SRZ) Sunrise Senior Living +48.37%, (SLRY) Salary.com +41.67%, (ETM) Entercom Communications +38.00%, and (REE) Rare Element Resouces +37.14%.
The Dow Jones Industrial Average began the week trading at 10,145.58 and moved to a low in the 9,941.84 area before ending the week trading higher to the upside. As for now the index is trading above its 5, 10, 32, and 50 week moving averages for the first time 2 weeks but is currently below its 200 week moving average in the 11,025.24 area. Upside resistance is at 11,258.01 with downside support in the 9,936.62 area.
The top movers in the Dow 30 this week were (JPM) J.P. Morgan Chase & Co. +7.02%, (BAC) Bank of America +6.97%, (CAT) Caterpillar +6.34%, (HPQ) Hewlett Packard Co. +6.16%, and (DIS) Walt Disney Co. +5.74%. The Dow Jones Industrial Average ended the week trading at 10,447.93 +297.28 or +2.93% higher on lighter than average upside trading volume of 3.71 billion. The average upside trading volume for the index is 4.07 billion.
At the tech heavy Nasdaq Composite Index there was also an uptick as the index ended the week trading higher after moving slightly lower the week prior. The index has been on a pullback for 12 of the past 19 weeks since April 26, 2010. The Nasdaq is currenly above its 5, 10, 32, and 200 week moving averages but below its 50 week moving average in the 2,240.46 area. The index is posied to move higher in the near term once it breaks above the 50 week moving average. Downside support for the Nasdaq is currently in the 2,061.14 area with upside resistance at 2,535.28.
The top movers in the Nasdaq 100 this week were (JOYG) Joy Global +11.17, (AMZN) Amazon.com, Inc. +9.59%, (SHLD) searss Holdings Corp. +9.48%, (LINTA) Liberty Media Holding Corpoartion +9.47%, and (NWSA) News Corp., Ltd. +9.44%. The Nasdaq ended the week trading at 2,233.75 +80.12 or 3.72% higher on lighter than average upside volume of 9.13 billion. The average weekly trading volume for the Nasdaq is 10.47 billion.
The Standard and Poors 500 also moved higher as the week came to a close. The top movers in the S&P 500 this week were (DF) Dean Foods +13.01%, (KBH) KB Home +12.88%, (ODP) Office Depot +12.29%, (MWW) Monster Worldwide, Inc. +11.48% and (HIG) Harford Financial Services +11.05%.
The index is currently above its 5, 10, 32, and 50 week moving averages but below its 200 week moving average in the 1,204.24 area. The index has downside support in the 1,010.91 area with upside resistance at 1,131.23. The index may move higher in the week ahead but must break above the 1,131.23 area in order to move higher to the upside in the near term.
The Standard and Poors 500 ended the week trading at 1,104.51 +39.92 or 3.75% higher on the upside on lighter than average upside trading volume of 16.70 billion. The average weekly upside trading volume for the index is 19.04 billion.
By: Marlin Rolle
*** Please have a close look at the charts listed below ****