As we closed the books on the week that passed in the stock market both the Dow Jones Industrial Average as well as the Standard and Poors 500 declines as the Nasdaq closed on the upside.
There was a continued decline in the price of oil, gold, as well as silver. The oil index began the week trading at $93.63 per barrel but closed to end the week trading at $92.15 down $1.24 or 1.33%. The oil index has been on the decline for 5 of the past 7 weeks.
The silver index began the week trading at $36.08 per ounce but pulled back to a price low at $34.64 before ending the week trading at $34.64 down $1.11 or -3.10%.
The gold index also closed to end the lower at $1,500.90 down $36.90 or -2.40%. The gold index has been moving lower for the past 3 weeks. Downside support for the gold index is at $1,434.24 with upside resistance slightly above its previous all time price high at $1,563.30.
The top sectors in the market in the week that past were the DJ US Forestry Paper index up +6.02%, followed by Networking +2.75%, S&P Chemicals +2.55%, Internet +2.08%, and S&P Retail +1.96%.
The top stock that advanced as the Dow and S&P 500 declined were (HRBN) Harbin Electric +78.23%, (SHZ) China Shen Zhou Mining & Resources +50.63%, Deer Consumer Products +36.09%, (TOBC) Tower Bancorp +32.66%, and (CSUN) China Sunergy Co. Ltd. +31.25%.
The Dow Jones Industrial Average started the week trading at 12,004.38 before moving below the 12,000 area to a price low at 11,874.94. The index is currently above its 50 and 200 week moving averages but below its 5,10, and 32 week moving averages. Downside support for the Dow Jones Industrial Average is at 11,543.79 with upside resistance at 12,876.10.
The top movers in the Dow 30 were (DD) Dupont Co. +4.82%, (CAT) Caterpillar, Inc. +4.32%, (AA) Alcoa, Inc. +3.46%, (HD) Home Depot +1.59%, and (VZ) Verizon Communications +1.41%.
The Dow Jones Industrial Average ended the week trading at 11,934.58 -69.78 or -0.58% on heavier than average downside volume of 3.64 billion. The average weekly volume for the index is 3.53 billion.
At the Nasdaq Composite Index there was a reversal in the price pattern as the index ended the week on the upside after 7 weeks of downside pressure. The Nasdaq began the week trading at 2,608.05 but pulled back to a price low in the 2,607.74 area before ending the week slightly higher to the upside.
The index is currently below its 5, 10, and 32 week moving averages but above its 50 and 200 week moving averages. Upside resistance for the index is in the 2,887.85 area with downside support in the 2,581.65 area.
As the week came to a close the Nasdaq ended the week trading at 2,652.89 up +36.41 or +1.39% on heavier than average upside trading volume of 10.09 billion. The average weekly trading volume foe the index is 9.53 billion.
At the Standard and Poors 500 the index started the week trading at 1,271.50 and declined to a price low in the 1,262.87 area before ending the week trading higher to the upside.
The index is currently below its 5, 10, and 32 week moving averages but above 50 and 200 week moving averages. Downside support for the index is at 1,235.30 with upside resistance at 1,370.58. In order for the S&P 500 to move higher in the week ahead the index must break above the 1,288.50 area.
The Standard and Poors 500 ended the week trading at 1,268.45 -3.05 or -0.24% on lighter than average upside volume of 14.67 billion. The average weekly trading volume for the S&P 500 is 14.92 billion.
By: Marlin Rolle
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