WizzWatch Market Newsletter

As the stock market continues to correct itself and we closed the books on another crazy week of trading, The Dow Jones Industrial Average, the S&P 500, bitcoin as well as the price of crude oil continued to advance higher to the upside. Although they may have moved higher it was another brutal week as the prices of gold, silver as well as the tech weighed Nasdaq Composite Index  slumped for the third consecutive trading week in a row.

The Dow Jones Industrial Average began the week trading at 31,065.90 and declined to a price low at 30,547.53 before ending the week trading higher. There were 22 advancers and 8 decliners in the index to end the week. The top price advancers on the index were (CVX) Chevron Corp. +9.00% followed by (AXP) American Express +8.92%, (DOW) Dow Holdings, Inc. +6.07%, (BA) Boeing +5.29% and (TRV) Travelers +4.71%. 

As the market closed to end the day on Friday the index closed to end the session trading at 31,496.30 up 593.93 points or +1.82% on heavier than average upside trading volume of 2.20 billion. The average weekly trading volume for the index is 1.90 billion. As for now downside support for the index is at 30,112.50 with secondary price support about 9.51% from its closing price on Friday at 28,504.97. Going forward we need a total of at least 5 positive days of momentum in order to confirm that the decline in the market is over and the market is once again in an uptrend.

I noticed that there were quite a few investors getting back into the market on Friday thinking that we are out of the woods and the declines in the market are over, but we have a long way to go as the market continues to correct itself. The dow has declined 2 out of the past 5 trading days.

At the Nasdaq Composite Index there was a continuation of pressure as the index continued to decline for the third consecutive week in a row. The Nasdaq began the week trading at 13,406.16 and declined to a price low of 12,397.05 before ending the week trading slightly higher. 

The top price advancers in the index were  (DLTR) Dollar Tree +5.99%, (JBHT) J.B. Hunt Transportation +5.96%, (GILD) Gilead Sciences +5.24%, (XEL) Xcel Energy +4.71% and (CTAS) Cintas Corp. +4.62%. There were 39 advancers in the Nasdaq 100 as 61stocks in the index moved lower.

The Nasdaq closed to end the week trading at 12,920.15 down -272.20 or -2.06% on heavier than average downside volume of 30.89 billion. The average weekly downside volume for the index is 22.97 billion. As for now downside support for the index is at 12,664.78 with secondary support at 11,098.77. 

As for the Standard and Poors 500 the index has also been feeling the pain as it to advanced to end the week trading higher for 2 out of the past 5 trading sessions. The top advancers in the index for the week were (FOXA) 21^st Century Fox +23.96%, (FANG) Diamondback Energy +23.78%, (DISCA) Discovery +21.16%, (DVN) Devon Energy Corp. +18.90% and (APA) Apache Corp. +17.84%.

Most of the price advancers in the index were mainly re-opening stocks as more and more people continue to get vaccinated and everything seems to be getting back to some form of normalcy. As the market closed to end the trading session on Friday the S&P 500 ended the week trading at 3,841.94 up 30.79 points or +0.81% on heavier than average upside trading volume of 14.11 billion. The average weekly trading volume for the index is 12.17 billion.

On the commodities front the price of silver and gold continued to decline as the price of crude oil continued to advance. The gold index is currently trading at April 2020 price lows as it closed to end the week trading at $1,698.50 per ounce down $30.30 or 1.75% as silver ended the week trading at $25.29 per ounce. The oil index closed to end the week trading at $66.06 per barrel up $4.56 or 7.19%. The oil index has been advancing for 14 of the past 18 weeks as it continues to move higher to the upside.  

By Marlin Rolle