Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street


Lots more US economic data this week.

Consumer credit, Small business sentiment, PPI, CPI, Fed Beige Book, retail sales, Production plus.

The CPI is watched because of the FOMC and its rate hiking. Retail sales are watched as a barometer of the consumer, though inflation as we know can disguise the results as they are based on prices. If inflation pushes up prices, retail sales rise without any real increase in sales.

The economic indicators can be taken to such an extreme they do not reflect reality, and their value becomes questionable.

We are hearing chatter on Wall Street and from financial news pundits about market tops and maybe this market Topping in here.

But, now the US major stock market indices are trending higher, rotation continues, and as 1 sector rallies, another tests, and then they reverse, changing positions as the money ebbs and flows

Last Wednesday to Friday we saw the drugs and some manufacturing start back up after tests. At the same time the tech leaders
tested, and set up for a bounce and Friday some already started back North.

So, we continue looking at stocks holding their trends  and/or in good pattern ready to move. Software looks interesting, drugs too.

Remember, always take what the market gives, and since it is your money it is your responsibility, so pay attention.


The Bulls Vs The Bears

Sentiment Indicators

VIX: 14.88; +0.23.
VXN: 19.76; +0.59
VXO: 13.66; +0.78

Put/Call Ratio (PCR) CBOE: 1.17; +0.12

The Bulls are back at 60+, people are Bullish and at these numbers we look for market highs, and then a decline.

The Bulls are at: 60.1 Vs 59.6 last

The Bears are at: 18.1 Vs 18.3 last


Support and Resistance

HeffX-LTN’s US Major Stock Market Indexes Technical Analysis for the Week Ended 7 September 2018

Date Symbol Price Technical Analysis Support Resistance
7 September 2018 QQQ 181.11 Neutral (0.21) 179.60 182.77
7 September 2018 DIA 259.54 Bullish (0.38) 257.92 259.72
7 September 2018 SPY 287.6 Bullish (0.44) 287.04 288.34

Have a terrific week

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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.

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