Commentary: Paul Ebeling on Wall Street

#PaulEbeling #WallStreet 

$DIA $SPY $QQQ $RUTX $SOX $VXX

Both Big and Small Cap Bulls are still running” — Paul Ebeling

Last weeks action

The shortened trading wk featured renewed strength in the Mega-caps, which drove the outperformance of the NAS Comp (+4.2%) and lifted the S&P 500 (+1.9%), DJIA (+0.6%), and the Russell 2000 (+2.2%), each benchmark index market new record highs with all of the Key technical indicators flashing Very Bullish at the session close.

  • Russell 2000 +9.8% YTD
  • NAS Comp +5.1% YTD
  • S&P 500 +2.3% YTD
  • DJIA +1.3% YTD

 On the ‘good’ economic news

This market senses things are not great economically, and that the flood of Mr. Biden’s executive orders is going to limit growth and jobs further.

That being the case, investors reacted to the ‘good‘ news as if it was bad news. They believe that the uptick in economic reports will not last.

And the “go big” aid/relief/stimulus is facing cold headwinds up Pennsylvania Avenue from the Capitol, as lawmakers are calling for Mr. Biden to scale back the $1.9-T Pork filled liberal Christmas wish spending list.

Less aid/relief/stimulus will soon mean less joy for this market and investors.

But, as long as the benchmark indexes have Northside momentum, good breath and volume, we play it that way, always taking what the market gives. When it get toppy it will tell us and we will tell you. For now the support is deep and the resistance is Nil.

Have a healthy week, Keep the Faith!

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Paul Ebeling

Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.   
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