Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street


Up this week: US Consumer Confidence, 2nd GDP read, Personal income and spending, Chicago PMI.

Classic Fed interest rate moves miscalculations is always cause for concern, as the Fed is making its same mistakes: it sees an overall still strong economy, stocks still strong, and it ignores the yield curve.

When it cannot ignore it any longer, it starts to conger reasons the yield curve does not mean anything this time. When more reasons bonds are wrong are heard from the Fed, we know it is going to overshoot. Hang on the Fed always overshoots. Hence, President Trump direct Tweeting to about the issue.

With the US stock indices marking new highs, worrying about the Fed seems a bit unearthly. Near term yes, but keep an eye on bonds as stocks rally, and as bonds and stocks rally you watch how the stronger stocks act.

Reversals from highs, breakdowns are the indicators.

Given the recovery by big names and the new all time highs in S&P 500 and NAS Comp, the play is North in here as the market has plenty of ammunition even with the light August volume

Seeing more Northside for AAPL and GOOGL plus looking other NAS Comp stocks setting up for the Northside. Plus
more industrial plays are looking good, so be ready to enter them, as they break North off their tests.

Remember, always take what the market gives, and since it is your money it is your responsibility


The Bulls Vs The Bears

Sentiment Indicators

VIX: 11.99; -0.42
VXN: 15.16; -0.63
VXO: 10.98; -0.06

Put/Call Ratio (PCR) CBOE: 0.92; -0.11

The Bulls and The Bears: The Bulls moving back to 60, the mark that associated with pullbacks; The Bears faded modestly but are gradually moving North.

The Bulls are at: 57.7 Vs 57.3 last

The Bears are at: 18.3 Vs 18.4 last

Support and Resistance

HeffX-LTN’s Major US Stock Market Indexes Technical Analysis for the Week Ended 24 August 2018

Date Symbol Price Technical Analysis Support Resistance
24 August 2018 QQQ 182.48 Bullish (0.26) 180.57 182.82
24 August 2018 DIA 257.85 Very Bullish (0.50) 257.30 259.13
24 August 2018 SPY 287.51 Bullish (0.39) 256.75  None

Have a terrific week

The following two tabs change content below.

Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

You must be logged in to post comments :