As the week that passed in the stock market came to a close there was nowhere to hide as all three major indices continued to move to the downside and the market continues to try to correct itself. The market ended the week with huge loses.
The Dow Jones Industrial Average, the Nasdaq Composite Index as well as the Standard and Poors 500 all ended the week trading lower. The past 2 days in the stock market were the worst since 2008. There were 528 stocks hit 52 week price lows and many analysts are predicting another recession coming very soon.
There was also an uptick in the (VIX) Volatility Index also known as the fear indicator. The (VIX) ended the week trading at 41.25 but a price break above the 48.20 area we will continue to see the market decline. The prices of commodities also declined cross the board as the markets continued to move lower. The prices of commodities have been on a pullback for the past few weeks.
Since the first of June 2011 cotton is down -25%, oil -23%, wheat -21%, copper -17% and corn -13%. The price of gold ended the week trading $1,662.00 per troy ounce down $152.60 or -8.41% as the price of silver ended the week trading at $31.08 down -$9.59 or -23.57%. The price of a barrel of crude oil fell hard to end the week trading at $79.96 down -$7.94 or -9.03% and the price of the dollar continued to move higher to the upside against a basket of major currency pairs for 3 of the past 4 weeks.
The top industry groups this week were all on the downside as the market continued to tumble. The Philadelphia Utility Index declined -1.39%, followed by Computer Technology -3.21%, Pharmaceuticals -3.88%, S&P Retail -5.08%, and the Morgan Stanley Health Care Products Index -5.40%.
The top percentage gainers in the market this week were (ZSL) Ultra Short Silver ETF +59.70%, (TVIX) VIX Short Term Bond +44.37%, (ERY) Energy Bear 3X Shares ETF +42.28%, (EDZ) Emerging Markets Bear 3X ETF +38.51%, and (OREX) Orexigen Therapeutics, Inc. +34.84%.
The Dow Jones Industrial Average began the week trading in the 11,506.67 area before moving to a price low at 10,597.14 before ending the week trading higher to the upside. As for now the index is slightly above its 200 week moving average but below its 5, 10, 32, and 50 week moving averages. Downside support for the index is in the 10,604.07 area with upside resistance in the 12,876.10 area.
The top percentage gainer in the Dow 30 this week was (INTC) Intel Corp +0.86% as (MCD) McDonalds fell -1.04%, followed by (IBM) International Business Machines -2.11%, (VZ) Verizon Communications -2.29%, and (HD) Home Depot -2.57%.
The Dow Jones Industrial Average ended the week trading at 10,771.48 down -737.61 or -6.41% on heavier than average downside volume of 4.49 billion. For the month of September the Dow Jones Industrial Average is down -7.25% or 842.05 points.
As for the tech weighed Nasdaq Composite Index there was a downturn in the index after it moved higher the week prior. The index began the week trading at 2,584.35 and moved to a price low in the 2,420.23 area before ending the week trading slightly higher.
The index is currently above its 200 weekly moving average but below its 5, 10, 32, and 50 week moving averages. Downside support for the tech heavy indices is at 2,331.60 with upside resistance in the 2,887.75 area.
The top percentage gainers in the Nasdaq 100 this week were (CELG) Celgene Corp. +2.67%, (CERN) Cerner Corp. +2.01%, (DISH) Echo Star Communications Corp. +1.79%, (AAPL) Apple, Inc. +0.95%, and (INTC) Intel Corp. +0.86%.
As the week came to a close the Nasdaq Composite Index ended the week trading at 2,483.23 down -139.08 or -5.30% on heavier than average downside trading volume of 10.87 billion. The average weekly trading volume for the index is 10.16 billion. For the month of September the Nasdaq Composite Index is down -96.23 points or -3.73%.
The Standard and Poors 500 also took a dive as heavy selling continued to hurt the market. The S&P 500 started the week trading at 1,214.99 and moved to a price low in the 1,114.22 area before ending the week trading higher to the upside. There were 122 stocks in the S&P 500 that hit 52 week price lows. As for now the index continues to slump after moving higher the week prior.
The S&P 500 has been moving in a sideways consolidation for the 9 weeks and need to break above the 1,230.80 area in order to move higher to the upside. Downside support for the index is in the 1,101.45 area with upside resistance at 1,370.65. As for now the indices remains below its 5, 10, 32, 50 and 200 week moving averages.
The top percentage gainers in the S&P 500 this week were (GR) Goodrich Corp. +31.07%, (GIS) General Mills Inc. +3.10%, (RHT) Red Hat, Inc. +2.69%, (CELG) Celgene Corp. +2.67%, and (FDO) Family Dollar Stores +2.26%. As the market came to a close on Friday afternoon the S&P 500 ended the week trading at 1,136.43 -79.58 or -6.54% on heavier than average downside trading volume of 19.69 billion. The average weekly trading volume for the S&P 500 is 17.12 billion.
By: Marlin Rolle
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