Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street


Beginning mid-afternoon Thursday and into the close Friday participants saw 1st hand the power of the of Wall Street when it moves the market South, as over 1-B/shares were exchanged on the NYSE.

If there is a bounce early this week it has hold in the face of the heavy selling

At 3:12a Monday as I write this report the major US stock market futures are trading sharply South.

On the bounce if there is one early, prudence dictates using a bounce to close positions., and wait for opportunities to put onnew positions should the market reverse the Southside day and continues back to trend higher.

Wall Street’s Southside action is important, but investors would prefer a rebound to set up better entry points  Vs where they closed Friday, expect more selling.

A market has to have leadership to move higher, and if more of the leadership groups reverse trends or break patterns then the Northside’s chance of returning is lessened.


Always respect Wall Street when it is selling the market, so “never stand in front of a moving train.”

There will always be a trade.

The Bulls Vs. The Bears


Sentiment Indicators

VIX: 17.5; +17.5. VIX rose 40% but is only at 17. 30 starts getting  interesting, 40+ is more important when considering a recovery.
VXN: 17.96; +17.96
VXO: 17.36; +17.36

Put/Call Ratio (PCR) CBOE: 1.18; +1.18, six 1.0+ readings in 3 wks, several more to come.

The Bulls and The Bears

The Bulls faded without hitting 60 and The Bears are climbing, as it should be.

The Bulls are at 52.5 Vs 55.9 last

The Bears are at 22.8 Vs 20.6 last


Support and Resistance


DJIA close: 18,089.69


18,181 the Jul 2015 high
18,168 the Apr 2016 high
18,247 the Aug 2016 low
18,288 the Mar 2015 high
The 50-Day EMA: 18,345
18,351 the May 2015 high
18,595 the Jul 2016 high
18,669 the Aug 2016 all-time high


18,016 the June 2016 high
17,978 the Nov 2015 high
17,600 the bottom of the April to June 2016 trading range.
The 200-Day SMA:17,566


S&P 500 close: 2127.81


2130 the Jun 2015 high
2135 the May 2015 high
The 50-Day EMA: 2157
2175 the Jun 2016 high
2194 the Aug 2016 all-time highSupport2126 the Apr 2015 high
2120 the Jun 2016 high
2119 the Feb 2015 high
2116 the Nov 2015 high
2111 the Apr 2016 high
2104 the Dec 2015 high
2094 the Dec 2014 high
2079 is the Nov 2014 high
2062 a Jan 2015 high
The 200-Day SMA: 2057

NAS comp close: 5125.91


The 50-Day EMA: 5138
5162 a Nov 2015 high
5232 the Y 2015 high
5271.36 the Aug2016 high


5100 a May 2016 high
5042 the Mar 2015 high
5009 a Mar 2015 high
4980 the Jun 2016 high
4969 the Apr 2016 high
4960 the Sept 2015 high
4916 a Nov 2015 low
44902 the Jul 2015 low
4894 the Sept 2015 high
The 200 day SMA at 4874

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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