As we close the books on the month of September the Nasdaq Composite Index as well as the Standard and Poors 500 continued to decline as the Dow Jones Industrial Average ended the week trading slightly higher. The current decline is due to the European Debt Crisis as well as worries of a recession looming as world markets continue to correct themselves.
Household incomes, government benefits, as well as personal income fell for the first time since October of 2009. Private sector wages also declined as the week came to a close.
The top percentage gainers for the week were (HGIC) Harleysville Group, Inc. +87.93%, (MELA) Mela Sciences, Inc. +39.31%, (PKT) Procera Networks +25.98%, (GNRC) Generac Holdings, Inc. +20.81%, and (ACUR) Acura Pharmaceuticals +18.47%.
The top industrial indices for the week were pharmaceuticals +2.63% followed by banks +0.97%, Health Care Products +0.50%, Utilities +0.49% and Oil +0.41%.
There was also a continued decline in the commodities markets as the price of gold, silver, copper, and oil declined. The gold Index ended the week trading at $1,626.50 per troy ounce down $35.50 or -2.14%, silver closed at $29.98 per ounce down -3.54% -$1.10 or -3.54%, copper ended the week trading at $3.11 down -0.20 or -6.22% as crude oil continued to stumble ending the week trading at $78.90 per barrel down $1.06 or -1.33%.
For the third quarter of 2011 the Standard and Poors 500 ended the quarter down -14% followed by the Nasdaq Composite Index down -13% and the Dow Jones Industrial Average down -12%. For the month of September the Dow Jones Industrials were down -6.03%, the Nasdaq down -6.36% and the S&P 500 down -7.18%.
The price of the dollar has been advancing for four of the past five weeks against a basket of major currency pairs. The Volatility Index also known as the fear indicator used to track investor confidence has been on a huge advance since breaking above 27.50 and its 200 weekly moving average. The Volatility Index ended the week trading at 43.87 very close to breaking above its 52 week price high set in August at 48.00.
The Dow Jones Industrial Average began the week trading in the 10,771.78 area but as the week continued the index advanced to end the week trading slightly higher to the upside. The Dow Jones Industrial Average is currently above its 200 weekly moving average but below its 5, 10, 32, and 50 weekly moving averages.
As for now the index continues to move in a sideways consolidation from the 10,597.14 area to the 11,716.90 area. Downside support for the Dow Jones Industrial Average is at 10,597.10 with upside resistance at 12,876.05.
The top percentage gainers in the Dow 30 this week were (MRK) Merck +5.31%, (XOM) Exxon Mobil +4.78%, (TRV) Travelers +3.42%, (JNJ) Johnson & Johnson +3.41%, and (IBM) International Business Machines +3.27%.
The Dow Jones Industrial Average ended the week trading at 10,913.38 +141.90 or +1.32% on heavier than average weekly volume of 4.49 billion. The average weekly trading volume for the Dow Jones Industrial Average is 4.48 billion.
At the tech weighed Nasdaq Composite Index there was a continuation of the decline from the week prior. The Nasdaq has been on a huge pullback for 16 of the past 22 weeks. The Nasdaq is currently below its 5, 10, 32, and 50 weekkly moving averages but above its 200 weekly moving average at 2,358.21.
Downside support for the index is at 2,331.54 with upside resistance at 2,887.85. The top percentage gainers in the Nasdaq 100 this week were (INFY) Infosys Technologies +5.89%, (MIICF) Millicom +5.31%, (CHRW) CH Robinson +3.73%, (GRMN) Garmin +3.35%, and (LRCX) Lam Research +2.93%.
As the week came to a close the Nasdaq Composite Index ended the week trading at 2,415.40 down -67.83 or -2.73% on heavier than average downside trading volume of 10.33 billion. The average weekly trading volume for the tech weighed indices is 10.31 billion.
As for the Standard and Poors 500 there was also a decline in the index for second week in a row. The S&P 500 had its biggest quartely drop since the thirs quarter 2008. The index has been on a roller coaster ride for the past 22 weeks as it continues to move lower. In the past 22 trading weeks, the S&P 500 has been on the upside only 5. As for now the index remains below all of its major moving averages. Downside support for the index is at 1,101.40 with upside resistance in the 1,370.70 area.
The top percentage gainers in the Standard and Poors 500 this week were (GNW) Genworth +12.77%, (AFL) Aflac +11.09%, (SHLD) Sears Holdings +9.46%, (JBL) Jabil Circuit +9.28%, and (IGT) International Game Tech +7.31%.
The Standard and Poors 500 ended the week trading at 1,131.42 down -5.01 or -0.44% on heavier than average downside trading volume of 17.97 billion. The average weekly trading volume for the S&P 500 is 17.20 billion.
By: Marlin Rolle
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