As we closed the books on the week that passed in the stock market, there was a decline of all three major moving averages. This week was a very nasty one as the Dow Jones Industrial Average, the Nasdaq Composite Index as well as the Standard and Poors 500 declined as the market continues to correct itself going forward.
As for the industrial indexes there was no escape from the downturn in the market. The Pharmaceutical Index declined -2.24%, followed Utilities -2.36%, Dow Jones Forestry/Paper -2.49%, Dow Jones Reits -3.28%, and Computer Technology -3.54%.
In the commodities markets there was a decline in the prices of gold, silver, and oil, The price of gold ended the week trading at $1,725.10 per troy ounce down $64.50 or -3.60%, as the price of silver ended the week trading at $32.42 per ounce down $2.26 or -6.51%.
The price of crude oil declined to end the week trading lower after moving higher for 6 of the past 7 weeks. There was also an advance in the price of the U.S. Dollar as it continued to move higher against a basket of currency pairs.
The volatility Index also known as the fear index closed to end the week on the upside at 32.00 +2.04 or +6.81%. A price move above 30.00 is significant being that we may see the market continue to decline if the volatility index continues to advance. A price break above the volatility Index previous price high at 48.00 will take the entire market lower going forward.
The top percentage gainers in the market this week were (NLST) Netlist +93.23%, (JAG) Jaguar Mining, Inc. +33.04%, (BXG) Bluegreen Corp. +31.86%, (CAST) Chinacast Education Corp. +27.41%, and (CVOL) (IMH) Impac Mortgage Holdings +21.51%.
The Dow Jones Industrial Average began the week trading at 12,153.00 and declined to a price low in the 11,676.35 area before ending the week trading higher.
The Dow Jones Industrial Average is currently below its 5, 32, and 50 week moving averages but above its 10, and 200 week moving averages. Downside support for the index is at 10,404.35 with upside resistance at 12,876.10. In order for the Dow to move higher in the week ahead the index would need to break above 12,284.42.
The top percentage gainers in the Dow 30 this week were (HPQ) Hewlett Packard +1.49%, (HD) Home Depot -0.47%, (PG) Proctor & Gamble -1.02%, (KO) Coca-Cola -1.07%, and (IBM) International Business Machines -1.14%.
The Dow Jones Industrial Average ended the week trading at 11,796.16 -357.52 or -2.94% on lighter than average downside trading volume of 4.04 billion. The average weekly trading volume for the Dow Jones Industrial Average is 4.05 billion.
At the tech weighed Nasdaq Composite Index there was also a decline as the indices declined for the third consecutive week. The Nasdaq began the week trading at 2,671.11 and declined to a price low in the 2,567.15 area before advancing to the upside to end the week slightly higher.
Downside support for the Nasdaq composite Index is at 2,298.78 with upside resistance at 2,887.85.As for now the index is below its 5, 10, 32, 50 week moving averages but above its 200 week moving average at 2,245.77.
The top percentage gainers in the Nasdaq 100 this week were (DISH) Echo Star +4.08%, (DTV) direct TV +1.70%, (JBHT) JB Hunt +1.63%, (CTAS) Cintas +1.09%, and (JOYG) Joy Global +0.83%.
The Nasdaq Composite Index ended the week trading at 2,572.50 -106.25 -3.97% on lighter than average downside trading volume of 8.94 billion. The average weekly trading volume for the tech heavy Nasdaq Composite Index is 9.97 billion.
The Standard and Poors 500 index began the week trading at 1,263.85 but declined to the 1,209.43 area before ending the week trading higher to the upside. The S&P 500 has been on the upside for 5 of the past 7 trading weeks and needs to break above the 1,292.77 area in order to move higher to the upside going forward.
The index is currently above its 10 and 200 week moving averages but below its 5, 32, and 50 week moving averages. Downside support for the S&P 500 is at 1,074.65 with upside resistance at 1,370.70.
The top percentage gainers in the S&P 500 this week were (MU) Micron +15.84%, (EK) Eastman Kodak +8.04%, (VMC) Vulcan Materials +5.47%, (RAI) Reynolds American +3.11%, and (FTI) FMC Tech +2.33%.
As this week in the stock market came to a close the Standard and Poors 500 ended the week trading at 1,215.65 -48.20 or -3.81% on lighter than average downside trading volume of 15.12 billion. The average weekly trading volume for the S&P 500 is 17.09 billion.
By: Marlin Rolle
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