Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

$DIA, $SPY, $QQQ, $VXX

This is jobs week. So, we will get to see how  many new low wage jobs the US economy added and/or how many good jobs it lost.

We are in the middle of earning season, and will see some smaller energy outfits and biotech results reporting this 1st week of May.

New month means new money.

With the US major market indexes having put in strong upside moves, tapping at resistance, and breaking down, it will  be interesting to see if managed money put any of its sidelined money to work.

We are still dealing with the US Fed and other central banks that are standing at the ready to continue support financial markets after the
run.

The Big Q: Will they let them test some and then step in, or are they done for the time being?

The Big A: I doubt they are done though they might let them test in here before they intervene again.

The DJIA finished Friday at 17773.64, -0.32%, it has been forming an Expanding Triangle, a volatile top pattern, which shows the indecisive state of the traders at these higher marks. The Northside looks restricted to 18200-300 near term,  but the Southside risk towards 17400 or lower is still open.

As I write this report (3:55a EDT)that DJIA, S&P 500 and NAS Comp Jun futures are trading flat to unchanged.

For now most of the recent leaders in the financial and energy sectors look solid in their trends, meaning keep playing them until they reverse.

Wall Street traders are playing the big names to the Southside on the rotation, seeing Southside opportunities in retail in here.

The market is at fat overhead resistance point and showing signs of weakness after the run higher and that patterns reads that there is market top in place, that is Key directional indicator

Savvy traders are playing moves that happen inside that pattern, North and South, but if and when the overall top asserts itself, most stocks will start trending with the market direction and that is South. Pay attention to the VIX (NYSEArca:VXX) in here.

Remember, that this Bull market is very long in the tooth, and it is May. Do not “throw Caution to the Winds”.

The name of the Wall Street game is to make money.

Have a terrific week.

Paul Ebeling

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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