As for the week that was in the stock market the Dow Jones Industrial Average, the Nasdaq Composite Index as well as the Standard and Poors 500 all moved lower. There were pullbacks across the board as all of the major market sectors declined.
Stocks ended the week on the downside after 5 days of declines due to reviving concerns of a double dip recession as the economy nearly stalled in the first half of 2011. Gross domestic product expanded at an annual rate of 1.3% in the second quarter below its expected rate of 1.7%.
The natural gas index ended the week down -1.75%, followed by the retail index -1.87%, utilities -1.96%, oil services -2.23%, and pharmaceuticals -2.41%. There was also a pullback in the price of crude oil and silver as the gold index continued to move higher to the upside.
Crude oil ended the week at trading at $96.05 down $3.68 or -3.69% as silver moved lower after 4 weeks of upside momentum. The silver index also moved lower as it ended the week trading at $39.89 down $0.21 or -0.52% as the price of gold continued to advance.
The gold index began the week trading at $1,607.90 per ounce but moved to a new all time price high at $1,637.50 before ending the week trading slightly lower at $1,628.30 per ounce. The gold index is poised to move higher to the upside as it continues to make higher highs and higher lows.
The Dow Jones Industrial Average began the week trading at 12,679.72 but moved to a price low in the 12,083.45 area before moving 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. Downside support for the index is at 11,755.70 with upside resistance at 12,876.10.
The top percentage gainers in the Dow 30 were (MSFT) down -0.47% followed by (IBM) International Business Machines -1.80%, (MCD) McDonalds Corp. -2.35%, (KO) Coca Cola Co. -2.47%, and (JNJ) Johnson & Johnson -2.89%.
The Dow Jones Industrial Average ended the week trading at 12,143.24 -537.92 or -4.24% on heavier than average downside volume of 3.59 billion. The average weekly trading volume for the Dow Jones Industrial average is 3.48 billion.
At the tech weighed Nasdaq Composite Index there was a decline in the index after moving higher the week prior. The Nasdaq has been on the upside for 2 of the past 7 trading weeks.
Downside support is at 2,640.00 with upside resistance at 2,887.80. The Nasdaq is currently below its 5 week moving average but below its 10, 32, 50 and 200 week moving averages.
The top movers in the Nasdaq 100 were (EXPE) Expedia, Inc. +5.46%, (BRCM) Broadcom Corp. +4.51%, (AMZN) Amazon.com, Inc. +2.77%, (CERN) Cerner Corp. +2.21%, and (BIDU) Baidu, Inc. +1.99%.
The Nasdaq Composite Index ended the week trading at 2,756.38 down -102.45 or -3.58% on heavier than average downside trading volume of 10.08 billion. The average weekly trading volume for the Nasdaq is 9.31 billion.
The Standard and Poors 500 also saw a decline to end the week as it continued to move in a sideways consolidation between 1,258.00 and 1,356.50 for the past 5 weeks.
Downside support for the index is in the 1,258.60 area with upside resistance at 1,370.60. The index is above its 50 and 200 week moving averages but below its 5, 10, and 32 week moving averages.
The top S&P 500 percentage gainers this week were (LXK) Lexmark Int’l. , Inc., +12.88%, (LSI) LSI Corp. +9.69%, (RSH) Radio Shack Corp. +6.18%, (CAM) Cameron International Corp. +5.67%, and (EXPE) Expedia, Inc. +5.46%.
The S&P 500 ended the week trading at 1,292.28 down -52.74 or -3.92% on heavier than average downside trading volume of 15.55 billion. The average weekly trading volume for the S&P 500 is 14.45 billion.
By: Marlin Rolle
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