Commentary: Paul Ebeling on Wall Street


Earnings coming to an end, as investors look farther down the line.

Last Friday was options expiration, and we saw allocation of new Wall Street money to the financial, industrial, home-centric, and energy stocks.

Notably, other sectors did not sell off, but paused to refresh.

This is the perfect scenario: new Wall Street money comes into new sectors driving them North, while staying in the others that are resting. That is sound rotation keeping the last round of leaders holding gains, pausing for a new move once the new money is deployed to the new sectors, the stuff of Bull markets.

Despite the impressive DJIA and RUTX gainers Friday, remember Key resistance looms.

New leaders will make their own way because they are not overbought. We have to see money flowing back into the earlier leaders that paused, while the newly anointed moved North. Solid rotation, pushing the market higher. 

If that action stays on pace, andthere is no selling then the indices can continue to move North, never mind the resistance.

My work shows that there is no indication of a rollover, just the overhead resistances and the possibility while they exist.

That being the case, am look for the best Northside money makers heading toward that resistance.

Remember, as long as the new Wall Street money pushes into those new sectors we want to make the plays, that means: “follow the money”.

Further, pay attention, it is your money and your responsibility.

The Bull Vs The Bears

Sentiment Indicators

VIX: 14.91; -1.31 
VXN: 17.70; -1.32 
VXO: 15.18; -1.13 

Put/Call Ratio (PCR) CBOE: 0.80; -0.12 

The Bulls Vs The Bears

Bulls up and Bears up. 

The Bulls are at: 49.5 Vs 48.6 last

The Bears are at: 21.5 Vs 20.6 last

Support and Resistance

HeffX-LTN’s overall technical support and resistance outlook for the major US stock market indexes is Bullish.

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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