As the first week of October 2011 comes to a close in the stock market the Dow Jones Industrial Average, the Nasdaq Composite Index as well as the Standard and Poors 500 ended the week trading on the upside.
Although the market ended the week on the upside many investors continue to worry about the European Debt Crisis going forward as well as slow growth and a recession in the United States. Year to date the Dow Jones Industrial Average is down -4.10% followed by the Nasdaq Composite Index down -4.84%, and the S&P 500 down -8.12%.
The job numbers that was released by the Labor Department on Friday showed that hiring rose more than economist expected but not enough to bring down the jobless rate as the market continues to correct itself.
The job number may have been better than expected but the numbers may not be enough to keep the market from going into a recession. Service jobs increased by 55,000, construction jobs by 26,000 as temporary jobs rose by 19,400.
The top sectors in the market this week were S&P Chemicals Index +7.29%, Computer Hardware +5.69%, Disk Drives +5.37%, Semiconductors +5.29%, and the Internet index +4.78%.
The volatility Index also known as the fear index moved to the downside this week for the first time in the past 2 weeks. A continued pullback in the price of the (VIX) Volatility Index to the 22.00 area will take the market lower but any move above the 48.00 area you can guarantee that we will see a huge price decline in the general market going forward.
The oil index advanced to end the week trading on the upside to close at $82.78 +3.88 or 4.92%. There was also an increase in the prices of gold and silver. The price of silver ended the week trading at $31.23 per ounce up $1.25 or 4.17% as the price of gold ended the week trading at $1,642.50 per troy ounce up $16.00 or 0.98%.
There has also been an increase in the price of the U.S. Dollar against a basket of major currency pairs. The U.S. Dollar has been moving higher to the upside for 5 of the past 6 weeks.
The top market movers this week were (SWTX) Southwall Tech, Inc. +43.82%, (CDTI) Clean Diesel Technologies +34.82%, (LTBR) Lightbridge Corp. +20.96%, (IGPG) IPG Photonics Corp. +18.96%, and (AMCF) Andatee China Marine +14.92%.
At the Dow Jones Industrial Average the index began the week trading at 10,912.10 and moved to a price low in the 10,404.49 area before ending the week trading slightly higher to the upside. The Dow Jones has been moving in a sideways consolidation for 9 consecutive weeks.
As for now the index is above its 5 and 200 week moving averages but below its 10, 32 and 50 week moving averages. Downside support for the indices is at 10,404.38 with upside resistance at 12,876.10.
The top percentage gainers in the Dow 30 this week were (HPQ) Hewlett Packard +10.82%, (CSCO) Cisco +7.97%, (MSFT) Microsoft +5.46%, (DIS) Disney +5.11%, and (DD) DuPont +4.83%.
The Dow Jones Industrial Average ended the week trading at 11,103.12 +189.74 or +1.74% on heavier than average upside trading volume of 5.7 billion. The average weekly trading volume for the Dow Jones Industrial average is 4.6 billion.
At the Nasdaq Composite Index there was a turn to the upside after week of declines in the index. The Nasdaq began the week trading at 2,401.19 and moved to a price low in the 2,298.89 area before heading higher as the week came to a close.
The Nasdaq is currently above its 200 week moving averages but below its 5, 10, 32, and 50 week moving averages. As for now the index is poised to move higher to the upside in the week ahead but must break above the 2,643.50 area. Downside support for the index is at 2,331.50 with upside resistance in the 2,879.01 area.
The top Nasdsaq movers this week were (RIMM) Research In Motion +15.13%, (NVDA) Nvidia +13.11%, (WYNN) Wynn Resorts +12.15%, (BIDU) Baidu.com +11.51% and (NTAP) Network Appliances +9.90%.
As the week came to a close the Nasdaq ended the week trading at 2,479.35 +63.95 or +2.65% on heavier than average trading volume of 12.3 billion. The average weekly trading volume for the Nasdaq Composite Index is 10.3 billion.
As for the Standard and Poors 500 there was also an uptick in the index as it ended the week trading higher on the upside. The S&P 500 began the week trading at 1,131.21 and moved to a price high at 1,171.40 before ending the week trading slightly higher to the upside.
As for now the index continues to move in a sideways consolidation and needs to break above the 1,230.82 area in order to move higher to the upside. Downside support for the index is at 1,101.44 with upside resistance in the 1,370.70 area.
The top percentage gainers in the S&P 500 this week were (EK) Eastman Kodak +78.21%, (MON) Monsanto +18.71%, (YHOO) Yahoo.com +17.46%, (TSO) Tesoro Petroleum +16.24%, and Akamai Technologies +15.85%.
The S&P 500 ended the week trading at 1,155.46 up +24.04 or +2.12% on heavier than average trading volume of 21.5 billion. The average weekly trading volume for the S&P 500 is 17.1 billion.
By: Marlin Rolle
*** Please have a close look at the charts listed below ****
In order to have an in depth view of each chart, please double click.