As the markets were hit with more bad news from the eurozone in the holdiday shortened week. There were declines across the board as the financial markets worldwide continued to decline due to the European Debt Crisis.
There was a pullback in the Dow Jones Industrial Average, Standard and Poors 500, and the Nasdaq Composite Index. There was also an unexpected downgraded of Belgium's credit by the S&P to AA from AA+. As for now the market continues to correct itself.
As for sectors analysis there was no escape from the downturn as they fell across the board. Health Products declined -3.01%, Utilities -3.47%, Brokers -4.20%, Gold & Silver -4.32%, and N. American Telecom -4.36%.
The top percentage gainers this week as the market continued to decline were (GEDU) Global Education & Technology Group, Ltd. +100.74% followed by (VRUS) Pharmasset, Inc. +83.25%, (ROYL) Royale Energy +50.16%, (POZN) Pozen , Inc. +44%, and (LHB) Direxion Daily Latin America Bear 3x ETF +26.51%.
On the commodities front there was a pullback in the prices of gold, silver, and oil. The gold index ended the week trading at $1,682.90 per troy ounce down -41.10 or -2.38% with current downside support in at $1600.10.
The price of Silver also declined for the second week in a row to end the week trading at $31.27 per ounce down $1.01 or 3.11%. As for the price of crude oil there was also a decline in the index as it closed to end the trading week at $97.30 per barrel down -0.64 or -0.65%.
The U.S Dollar Index advanced against a basket of major currency pairs for the second straight week trading slightly below its previous price high set in October 2, 2011 at $79.84. Downside support for the dollar is at $72.60 with upside resistance at The Dollar ended the week trading at $79.69 as the Euro continued to decline for the fourth consecutive week.
The Euro ended the week trading at 132.26, upside resistance for the Euro is at $149.40 with downside support at $119.02 slightly below its June 2010 price low. There was also a decline in the price of the British Pound for the fourth consecutive week as it close to end the week at $154.38.
The Dow Jones Industrial Average began the week trading at 11,795.55 and moved to a price low at 11,231.56 before ending the week slightly higher to the upside. The index is currently above its 200 week moving average but below its 5, 10, 32, and 50 week moving averages. Downside support for the index is at 10,404.38 with upside resistance at 12,876.10.
There were no gainers in the Dow 30 this week as (WMT) Wal-Mart declined -0.59%, (MCD) McDonalds -0.69%, (KFT) Kraft Foods -1.29%, (VZ) Verizon -3.07%, and Johnson and Johnson -3.15%.
The Dow Jones Industrial Average ended the week trading at 11,231.78 -564.38 or -4.78% on lighter than average downside trading volume of 3.01 billion. The average weekly trading volume for the Dow Jones Industrial Average is 4.17 billion.
At the tech heavy Nasdaq Composite Index there was a decline in the index for the fourth consecutive week. The Nasdaq has been on a pullback for the past 30 trading weeks from its 2011 price high at 2,887.75. As for now the index continues to decline.
Downside support for the Nasdaq Composite Index is at 2,298.78 with upside support at 2,887.86. As for now the index is trading above its 200 week moving average but below its 5, 10, 32, and 50 week moving averages. The index has closed on lighter than average trading volume for the past four weeks.
As for the Nasdaq 100 there were 3 stocks that moved higher as 97 other declined to move higher. . The top gainers were (BIIB) Biogen Idec +1.44%, (NVDA) Nvidia +0.79%, and (ORLY) O’Reilly Auto +0.05%, as (APOL) Apollo and (ROST) Ross Stores declined -0.51% respectively.
As the week came to a close the Nasdaq Composite Index ended the week trading at 2,441,51 down -130.99 or -5.09% on lighter than average trading volume of 6.24 billion. The average weekly trading volume for the Nasdaq Composite Index is 9.84 billion.
The Standard and Poors 500 did not escape the bloodbath in the market as it continued its decline for 3 of the past 4 weeks. The index is currently below its 5, 10, 32, and 50 week moving averages but above its 200 week moving average at 1,136.49.
Downside support for the Standard and Poors 500 is at 1074.65 with upside resistance at 1,292.77. Since the Standard and Poors 2011 price high set in April at 1,370.58 the index has declined for 146 trading days.
Based on technical analysis as well as the Tom Demark sequential countdown there are seven trading days to go before the market breakout to the upside depending upon how the European Debt crisis plays out in the next 2 trading weeks.
The top percentage gainers in the Standard and Poors 500 this week were (FTR) Frontier +1.70%, (AN) Auto Nation +1.67%, (BIIB) Biogen Idec +1.44%, (NVDA) Nvidia +0.79%, and (WU) Western Union +0.56%.
The Standard and Poors 500 ended the week trading at 1,158.67 down -56.98 or -4.69% on lighter than average trading volume of 10.53 billion. The average weekly trading volume for the Standard and Poors 500 is 16.87 billion.
By: Marlin Rolle
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