As for the week that passed in the stock market there has been a continuation of upside momentum taking place as stocks continue to advance. The Dow Jones Indutrial Average, the Nasdaq Composite Index and the Standard and Poors 500 have all continued to move higher as the week came to an end. All three major indices have been on a pullback in price since the end of April of this year.
As for now all three major indices have been turning to the upside as we head towards the month of October. The Dow, Nasdaq, and S&P 500 have all been moving higher to the upside for the past four weeks. Historically many traders will get out of the market in the month of May in order to go to cash before they return to trading in the months of October or November. This strategy is known also known as sell in May and go away".
The price of gold has also been moving higher for seven of the past eight weeks as it hit an all time high in price earlier in the week at $1,299.70 per troy ounce. The price of gold is poised to continue moving higher in the weeks ahead. The (VIX) Volatility Index ended the week down 1.36% as the price of the U.S. dollar continued it's decline against a basket of currency pairs currently down 2.46% for the week.
As for the the oil index the price of a barrel of crude has been moving between a low in price at $70.76per barrel to a high of $78.46 for the past 5 trading weeks. Upside resistance for the oil index is at $832.05 with downside support at $67.15.
The top stocks in the market this week were (NUHC) Nu Horizons Electronics +103.23%, (TTPA) Trintech Group +53.36%, (INET) Internet Brands +44.46%, (TESS) Tessco Technologies +42.22%, (VRX) Valeant Pharmaceuticals +37.52%.
The Dow Jones Industrial Average began the week trading at 10,608.08 and did not decline any lower before ending the week trading higher to the upside. Downside support for the Dow Jones Industrials is at 9,936.62 with upside resistance currently in the 11,258.01 area.
The Dow is 397.25 points away from breaking out above resistance and 140.98 points away from breaking above its 200 week mnoving average. The Dow is currenlty above its 5, 10, 32, and 50 week moving average but below its 200 week moving average at 11,001.24.
The top stocks in the Dow 30 this week were (AA) Alcoa +9.22%, (CAT) Caterpillar +8.95%, (HD) Home Depot +5.85%, (HPQ) Hewlett Packard +4.70%, and (AXP) American Express +4.25%. The Dow Jones Industrial Average ended the week trading at 10,860.26 up +252.41 or +2.38% higher on lighter than average upside volume of 3.56 billion shares. The average weekly trading volume for the Dow Jones Industrial Average is 3.89 billion.
At the tech weighed Nasdaq there was a continuation of upside momentum as the index continued to move higher to the upside for it's fourth consecutive week. The Nasdaq began the week trading at 2,322.80 and moved to a price low in the 2,361.11 area before ending the week trading higher on the upside. The Nasdaq is currently above its 5, 10, 32, 50 and 200 week moving averages. Downside support for the Nasdaq is at 2,099.29 with upside resistance at 2,535.28.
The top market movers in the Nasdaq 100 this week were (NVDA) NVidia Corp. +16.21%, (BIDU) Baidu +14.11%, (SHLD) Sears Holdings +12.40%, (AMZN) Amazon.com +8.37%,a nd (KLAC) KLA-Tencor Corp. +7.73%. The Nasdaq ended the week trading at 2,381.22 +65.61 or +2.83% higher on the upside on higher than average trading volume of 10.20 billion. The average weekly trading volume for the Nasdaq Coposite Index is 10.17 billion.
As for the Standard and Poors 500 there was also a move to the upside that took the index a lot higher as the week came to an end. The top movers in the index this week were (NVDA) Nvidia +16.21%, (ODP) Office Depot +14.43%, (SHLD) Sears Holdings +12.40%, (TDC) Techdata +11.89%, and (AMD) Advanced Micro Devices +11.76%.
The S&P 500 began the week trading at 1,126.57 before moving to a price low at 1,122.79 and ending the week trading higher. The index is currently above it's 5, 10, 32, and 50 week moving averages but below its 200 week moving average at 1,200.25. Upside resistance is at 1,219.80 with downside support in the 1,039.70 area.
The S&P 500 ended the week trading at 1,148.67 +23.08 or 2.05% on lighter than average upside volume of 16.96 billion. The average weekly trading volume for the S&P 500 is 18.06 billion.
By: Marlin Rolle
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