As the first week of the year in the stock market came to a close the Dow Jones Industrial Average, the Nasdaq Composite Index as well as the Standard and Poors 500 closed to end the week on the upside.
The stock market is currently in a confirmed uptrend so we will continue to see the market advance in the week ahead. Many investors are still concerned with the European debt crisis as well as tensions in the Mideast as the U.S. markets continue to move higher. Nonfarm payrolls for December rose to 200,000 beating all estimates as the unemployment rate decreased to 8.5%.
In the commodities markets there were advances in the prices of oil, gold, silver, copper, and platinum as palladium declined. The gold index closed to end the week trading at $1,617.40 +52.60 +3.36% as the price of oil closed to end the week trading at a new 52 week price high. The oil index closed to end the week trading at $102.00 per barrel up $2.80 or 2.82%.
There was also a continued advance in the price of the U.S. Dollar against a basket of major currency pairs. The U.S. Dollar index has been making higher highs and lows for 14 of the past 21 weeks. The Dollar ended the week at 81.25 up +1.08 or 1.34%
The top percentage gainers that helped to take the market higher were (REE) Rare Earth Element Resources +77.23%, (DNDN) Dendreon Corp. +62.50%, (LCAV) LCA-Vision, Inc. +56.55%, (FSGI) First Security Group +48.09%, and (NPD) China Nepstar Chain +37.75%.
The Dow Jones Industrial Average began the year 2012 trading at 12,221.19 and moved to a price high at 12,479.65 before ending the week trading slightly lower.
The index has been moving on the upside for 12 of the past 23 weeks as it continues to advance. Downside support for the index is in the 10,404.49 area with upside resistance at 12,876.01. As for now the index continues to move higher to the upside above its 5, 10, 32, 50, and 200 week moving averages.
The top performers in the Dow 30 this week were (BAC) Bank of America +13.19%, (MSFT) Microsoft +7.99%, (JPM) JP Morgan Chase +6.57%, (AA) Alcoa +6.14%, and (DIS) Disney +5.83%.
The Dow Jones Industrial Average ended the week trading at 12,359.92 +142.36 or +1.17% on lighter than average upside trading volume of 3.58 billion.
At the Nasdaq Composite Index there was an advance to the upside as the index continued to advance for 8 of the past 22 weeks. The index is currently above its 5, 10, 32, and 200 weekly moving averages but below its 50 week moving average at 2,674.76. Downside support is at 2,298.79 with upside resistance at 2,887.85.
The top performers in the Nasdaq 100 this week were (NFLX) Netflix +24.52%, (STX) Seagate Technology +15.39%, (MU) Micron +14.83%, (MRVL) Marvell Tech +14.33%, and (ESRX) Express Scripts +11.39%.
The Nasdaq Composite closed to end the week trading at 2,674.22 +69.07 or 2.67% on lighter than average upside trading volume of 6.89 billion. The average weekly volume for the Nasdaq is 8.60 billion.
The Standard and Poors 500 started out the week trading at 1,258.86 and moved to a price high at 1,284.62 before ending the week trading slightly lower.
The index is currently above its 5, 10, 32, 50 and 200 week moving averages. The Standard and Poors 500 is poised to continue its price move to the upside in the week ahead but must break above the 1,292.67 area. Downside support is at 1,074.67 with upside resistance at 1,370.18.
The top performers in the Standard and Poors 500 this week were (MU) Micron +14.83%, (API) Advanced Photonix +14.55%, (DNR) Denbury +13.77%, (BAC) Bank of America +13.19%, (FII) Federated Investors +13.15%.
The Standard and Poors 500 ended the week trading at 1,277.81 +20.21 +1.61% on lighter than average upside trading volume of 12.03 billion. The average weekly trading volume for the S&P 500 is 14.75 billion.
By: Marlin Rolle
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