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

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There is a saying on Wall Street that goes like this, “The trend is your friend until the end.” Well, the trend in the S&P 500 has been extremely Bullish over the past 3 wks, and the market respects the trend”–Paul Ebeling 

What happened last week

We saw new highs on the S&P 500, DJIA and the mid-cap S&P 400.

The NAS Comp, despite all the help from the mega-cap stocks, still has not hit a fresh high over the February high mark. Meanwhile, the PHLX Semiconductor Sector (SOX) continues to look good. Keeping an eye on its set up.

Technical Analysis

S&P 500 rallied, tested, rallied and tested in its uptrend channel. The S&P 500 is now at the upper trend line, as it moved to its new high. After 3 wks of Northside at the upper channel line, it may struggle a bit here, but it is still in a solid uptrend.

NAS Comp is closing in on its own new highs at the February all-time high. This has occurred just as the big NAS names that led it here appear to be slowing the moves a bit. The NAS has been turned back at each Key resistance mark on its way back up. The February high is a good place for it to pause, refresh, consolidate and reset the Northside move.

What to expect this week

FactSet estimated that S&P 500 companies would report aggregate earnings per share growth of 28% for Q-1, for the biggest rise in more than 10 yrs. Of the handful of S&P 500 companies that reported results last week, none issued negative earnings per share guidance for Q-2, and 5 offered positive guidance

Lots of earnings reports on tap

  • Monday: Coca-Cola (KO) before market open; IBM (IBM), United Airlines (UAL) after market close
  • Tuesday: Johnson & Johnson (JNJ), Harley-Davidson (HOG), Abbott Laboratories (ABT), Procter & Gamble (PG), Lockheed Martin (LMT), Philip Morris (PM) before market open; Netflix (NFLX) after market close 
  • Wednesday: Anthem (ANTM), Nasdaq (NDAQ), Halliburton (HAL), Verizon Communications (VZ) before market open; Whirlpool (WHR), Chipotle (CMG), Spirit Airlines (SAVE), Las Vegas Sands (LVS) after market close 
  • Thursday: Dow Inc (DOW), DR Horton (DHR), Alaska Air Group (ALK), Blackstone (BX), AT&T (T), Quest Diagnostics (DGX), American Air Lines (AAL), Valero Energy (VLO), Biogen (BIIB), Southwest Airlines (LUV), Union Pacific (UNP) before market open; Boston Beer Company (SAM), Snap (SNAP), Intel (INTC) after market close
  • FridaySchlumberger (SLB), American Express (AXP), Honeywell (HON), Kimberly-Clark (KMB

Some Wall Street firms warn of the potential for a healthy 5% to 8% pullback across the board, it is your money, so your responsibility, pay attention in here and for the rest of Y 2021. And always take what the market gives.

Have a healthy week, Keep the Faith!