Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street


Again, the big cap indexes are set up well. The small and mid-caps are near the old highs and testing. Earnings are set up, ready to drive this market North.

The Technicals

DJIA: The DIA struggled more on the trade issues than did the S&P 500, but it handled them OK. DIA gaped open lower Thursday, sold to the 20-D EMA for the 1st visit there in weeks, reversed intra-day to hold the 10-Day EMA. Friday DIA bounced from there. DIA has over 1100 pts to go to meet its high, there is room to do it but this is August.

S&P 500: The SPY got a bit nervous early last week, but held the 20-Day EMA near the Top of its channel, then on Thursday made the intra-day low to high reversal. Then on Friday added more on low volume. S&P 500 wants a new high over the January’s, that is just 33 pts up. When it gets there the Big Q is what will it do, see volatility like the NAS Comp and high growth sectors, or  power through? I see it about to hit the same new highs.

NAS Comp: QQQ started last week testing the 50-Day MA in the middle of its uptrend channel. Then fell from new highs in very volatile action as big NAS Comp FAANGs missed earnings. GOOGL came in with its good results, and NAS Comp gaped higher reversed and sold off last Monday. AAPL came to it aid, and Thursday it worked. Friday it paused to refresh. Prefer a test of
support in the uptrend channel, then a bounce. The Big Q: will the other FAANGs kick in this week? We wait, We see.

Remember it is your money, so your responsibility, and there will always be a trade.

The Bulls Vs The Bears

Market Sentiment

VIX: 11.64; -0.55
VXN: 15.81; -0.50
VXO: 10.14; -0.72

Put/Call Ratio (PCR) CBOE: 0.90; -0.07

The Bulls Vs The Bears

The Bulls are running in the 50s range the past 8 wks, they are off of the highs, near the Top of the range that signals Pullbacks.

The Bulls are at: 54.5 Vs 54.9 last

The Bears are at: 18.8 Vs 18.6 last


Support and Resistance

HeffX-LTN’s US Major Stock Market Indexes Technical Analysis for the Week Ended 3 August 2018

Date Symbol Price Technical Analysis Support Resistance
3 August 2018 QQQ 180.08 Bullish (0.33) 178.06 182.82
3 August 2018 DIA 254.39 Bullish (0.28) 253.78 255.12
3 August 2018 SPY 283.6 Bullish (0.48) 282.50 284.01

Have a terrific week

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