Commentary: Paul Ebeling on Wall Street

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The Bull trend is still North, after last week consolidation, the new money will flow in” — Paul Ebeling

What happened last week

All major US stock market indexes consolidated and tested, as the DJIA catches up. And the news was overall good.

The technicals

S&P 500 like the PHLX Semiconductor Sector (SOX) came off of the 50-Day MA with an intraday test and a rally. Then fell back down to the 50-day MA. While it is still holding the trend at the 50-Day MA, saw the sellers come back and flex.

NAS Comp broke the 50-Day MA last Tuesday, it did not bounce. Something of a weak right shoulder to a head-and-shoulders pattern formed over the past 6 wks. 13,000 is the neckline, which is the point where a break suggests more Southside in theory, this particular pattern is not solid. So given the market’s move and the other issues, the NAS Comp is setting up to break North.

What to expect this week

The trend is still North, as we all know the trend is our friend and we will always take what the market gives.

Again, the money is flowing in, in record amounts and the world markets are overall Bullish on this ongoing economic recovery.

However, pay attention, the market can reverse on a dime, and remember it is your money so your responsibility.

Have a healthy week, Keep the Faith!