Commentary: Paul Ebeling on Wall Street


As earnings season comes to a close investors look down the line.

No trade deal announced yet, but President Trump and Top Chinese negotiators in Washington concurred there will likely be 1 and the 1 March deadline for the tariff hike was pushed Sunday, the Chinese FM returns to Beijing and a Summit is prepared with President Xi in Mar a Lago when President Trump returns from Hanoi, stating only they can hammer out the final details of the trade deal.

Stock futures are higher across the board at this writing, and stock are expected to opened higher in NY Monday as more sidelined Wall Street money is seen at the door and Short bets ankled.

That does not mean I am convinced the indexes will break through the range and move on to new highs. As the S&P 500 is still below 2800 and DJIA is at 26,000. There is some strong resistance at the Top of range and highers

The run up from the 26 December lows is 9 weeks old and in some cases has topped the December high and even the November high where the selloff started.

This is a 24 year long time, with no test, moving into Key resistance. At some point the indexes are going to test this move either with a pullback to test resistance turned support, a deeper test to the trading range lows, and in the extreme, back toward the December low.

The indexes and stocks are not showing signs of running out of gas in here. at this point. To the contrary, more stocks are joining in and the leaders, after the pause to refresh.

I do not see Wall Street rolling over in here.

That said, there is more Northside now, meaning to continue play until breakouts North start reversing. 

Pay attention, it is your money and your responsibility.

The Bulls Vs The Bears

Sentiment Indicators

VIX: 13.51; -0.95 
VXN: 16.95; -1.24 
VXO: 13.87; -0.99 

Put/Call Ratio (PCR) CBOE: 0.79; -0.14 

Bulls and Bears: These guys are getting bullish; Bulls move over 50 while Bears fell below 21,as fear continues to fade.

The Bulls are at: 51.9 Vs 49.5 last

The Bears are at: 20.7 Vs 21.5 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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