Commentary: Paul Ebeling on Wall Street, the Trend Continues Bullish

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The trend is your friend until the end.” The trend in the S&P 500 has been extremely Bullish over the past several wks, and the market sees it continuing.”–Paul Ebeling 

What happened last week

Mr. Biden’s proposal to 2X capital gains taxes slowed the move North. Then traders and investors focused and came back on pace, that with a dovish Fed and trillions in stimulus, and decided Mr. Biden is dead wrong again, shouting ‘Ignore Him’ and buy.

Mr. Biden is seen as a pebble in the road and that his tax notions will not happen.

Technical Analysis

S&P 500 and DJIA marked their 10-Day EMA’s again Thursday and bounced Friday.

NAS Comp closed Thursday at a point between its 10-Day and 20-Day EMA. There was no breakdown on the day. But, there was a perfect Northside setup for Friday.

What to expect this week

The economy is on pace to make up all the lost ground caused by the VirusCasedemic by the end of the yr.

The FOMC meets Tuesday and Wednesday. The market respects the Fed’s view because the Fed is very intent on maintaining its dovish policy despite all the solid economic indicators, no tapering until Y 2023 is seen.

The Q-1 GDP report will be released Thursday at 8:30a EDT. It is forecast to increase by 6.5% on an annualized basis. We see much faster growth in the frame.

Friday the Fed’s favorite inflation measure, the personal consumption expenditure price index is due for March and the core PCE is forecast to rise by 0.3% with a 1.8% Y-Y rise.

Still, some Wall Street firms warn of the potential for a healthy 5% to 8% pullback across the board.

Remember, pay attention, as it is your money, so your responsibility, do not try to call a Top, and always take what the market gives.

Have a healthy week, Keep the Faith!

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