Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

$DIA, $SPY, $QQQ, $VXX

The major US stock indexes were consolidating the recent moves, buying, selling, buying on lite volume, then last Wednesday came to life with the release of the Schoolmarm Yellen’s testimony to Congress.

The we saw solid moves for 3 day’s running, Friday saw the indices marking new all time highs and breaking out of trading ranges, the NAS 100 lagged a bit, but expect it to come around early this week, and Top the June highs

Technically there is not a lot of power, as all of the major indexes rose on lite volume and narrow breadth.

The Fed is there along with the Protect the Market Bulls marking the market for another recovery.

They may be ready for a test of the week to the Northside though whether it is
more than a test becomes less likely now that the Fed is running for cover, do not expect a rate hike this year now, as the US economic data is weak and does not support it, plus inflation is under control below 2%

On a test exit some plays and gather some dry powder, and then set up new Norhtside buys. If a test is just a test, then there are new Northside entries.

If not and the market rolls over hard, then there will be good Southside plays instead.

Manged Money Rotation has given to some, taken from others. It could return, but again, with the Fed becoming more Dovish, new money may now come in driving all sectors higher.

Understand that both scenarios are on the cards when watching the market action this week.

Remember, always take what the market gives, and since it is your money, it is your responsibility.

The Bulls Vs The Bears

Sentiment Indicators

VIX: 9.51; -0.39
VXN: 13.8; -0.82
VXO: 8.64; +0.24

Put/Call Ratio (PCR) CBOE: 0.84; -0.03

The Bulls Vs The Bears

The Bulls slip to Y 2017 lows, the Bulls are falling but the Fed’s dovishness and juice will bounce them
back up, maybe.

The Bulls are at 50.0 Vs 52.5 last

The Bears are at 18.6 Vs 18.8 last

 

Support and Resistance

DJIA close: 21,637.74

Resistance

None

Support
21,535 the prior all-time high
The 50-Day EMA: 21,224
21,169 the Mar 2017 high
20,553 the May 2017 low
20,547 a Apr 2017 low
20,412 the Mar 2017 low
20,400 a Ap 2017 low.
20,126 the Jan 2017 high
The 200-Day SMA; 20,121

 

S&P 500 close: 2459.27

Resistance

None

Support:
2453 the prior all-time high
2439 a Jun 2017 high
The 50-Day EMA: 2417
2406 the May 2017 high
2401 the Mar 2017 high
2352 the May 2017 low
2348 the Apr 2017 low
2329 a Mar 2017 low
2322 the Mar 2017 low
2319 the 78% Fibo retrace
The 200-Day SMA: 2306

NAS Comp close: 6312.47

Resistance
6341.70 the Jun 2017 all-time high

Support
6300 a Jun 2017 high
6205 the May 2017 high
The 50-Day EMA: 6153
6050  the Y 2016 trendline
5996 the May 2017 low
5937 the Apr 2017 high
5915 a Apr 2017 high
5910 the Apr 2017 low
5800 the Feb 2017 low
The 200-Day SMA: 5729

Have a terrific week.

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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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