Wizzwatch Weekly Newsletter

As for the week that passed in the stock market there was a huge turn around in the Dow Jones Industrial Average, the Nasdaq Composite Index and the Standard and Poors 500 after weeks of declines.

There was momentum in the market across the board as pharmaceuticals, gold, transports, silver, and oil all advanced higher to the upside after weeks of declines. The top sectors in the market this week were Airlines +11.44%, followed by Oil Services +10.74%, Oil +8.56%, Natural Gas +8.27%, and Networking +8.15%.

The Dow Jones Industrial Average is up +0.58% for the year, followed by the Nasdaq Composite Index up +0.56%, and the Standard and Poors 500 down -2.63%.

The top percentage gainers in the market this week were (BBND) Big Band Networks +83.74%, (USU) Usec, Inc. +68.60%, (ROYL) Royal Energy +65.02%, (LIZ) Liz Claiborne +62.74%, and (EXM) Excel Maritime Carriers.

Commodities also moved higher during the week lead by Heating Oil up +7.37% followed by Gasoline +6.79%, and S&P GSCI Agricultural Index +6.81%+.

The gold index also moved higher during the week to end the week trading at $1,680.70 per troy ounce up $38.20 or 2.33%. There was also a run up in the price of silver as well as in the price of oil. Silver ended the week trading at $32.17 up 3.01% as crude oil closed to end the week trading at $87.28 per barrel or 5.44%.

There was a decline in the price of the U.S. Dollar against a basket of major currency pairs as it declined for the first time in the past 3 weeks. The (VIX) Volatility Index also known as the fear index declined for the second straight week reliving some fear in the market that things may get worse before they get better.

The Dow Jones Industrial Average began the week trading at 11,104.56 before pulling back to a price low in the 11,104.56 area before advancing to end the week trading higher on the upside. The Dow has been on continued move to the upside for the past 3 weeks.

As for now the index is currently above its 5, 10, and 200 week moving averages but below its 32 and 50 week moving averages. Downside support for the Dow Jones Industrial Average is at 10,404.40 with upside resistance at 12,753.95. The Dow Jones Industrial Average is poised to move higher in the week ahead but must break above the 11,716.95 area.

The top percentage gainers in the Dow 30 were (CAT) Caterpillar +11.36%, (DIS) Disney +8.74%, (DD) DuPont +7.61%, (GE) General Electric +7.10%, and (MMM) 3m +6.87%.

The Dow Jones Industrial Average ended the week trading at 11,644.49 +541.37 or 4.88% on lighter than average weekly upside volume of 3.86 billion. The average weekly trading volume for the indices is 4.53 billion.

At the Nasdaq Composite index there was also an advance to the upside as it continued to move higher for the second consecutive week. The Nasdaq has been moving in a sideways consolidation for a few weeks and is ready to move higher in the week ahead. This advance to the upside of the Nasdaq this week was its biggest weekly gain since March of 2009.

Downside support for the tech weighed index is at 2,298.80 with upside resistance at 2,887.85. The Nasdaq Composite Index is currently above its 5, 10, and 200 week moving averages but below its 32 and 50 week moving averages.

The top percentage gainers in the Nasdaq 100 were (JOYG) Joy Global +15.86%, (BIDU) Baidu +15.43%, (CTXS) Citrix +14.71%, (NII Holdings +14.71%, and (ADSK) Autodesk +14.56%. The Nasdaq Composite Index ended the week trading at 2,667.85 +188.50 or +7.60% on lighter than average upside trading volume of 8.54 billion. The average weekly trading volume for the Nasdaq is 10.21 billion.

The Standard and Poors 500 has also been making a move to the upside after weeks of moving in a sideways consolidation price pattern. The S&P 500 has been moving in this formation for 10 consecutive weeks and may move higher in the week ahead. In order for the Standard and Poors 500 to advance higher to the upside in the week ahead it must breakout above the 1,230.80 area.

As this week came to an end, the S&P 500 finally crossed above its 5 and 10 week moving averages for the first time since falling below both moving averages in mid July. The index is currently above its 5, 10, and 200 week moving average but below its 32 and 50 week moving averages. Downside support for the S&P 500 is at 1,074.65 with upside resistance at 1,230.80.

The top percentage gainers in the Standard and Poors 500 were (HAR) Harman +23.09%, (DNR) Denbury +22.01%, (RRC) Range +20.81%, (VLO) Valero Energy +19.41%, and (LNC) Lincoln +19.41%.

The S&P 500 ended the week trading at 1,224.58 +69.12 or +5.98% on lighter than average upside trading volume of 15.61 billion. The average weekly trading volume for the S&P 500 is 17.42 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.