Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

$DIA, $SPY, $QQQ, $RUTX, $VXX

FLASH: US-China Trade News is now Old News, and No Deal makes No Difference, the Fed is the Key to stock action, buy the dips.

Watching the Fed, and without a trade deal the fear of a slowdown will keep the Fed patience mode.

The President and the Wall Street wants Fed Chairman Powell to admit it and cut interest rates. A Dovish Fed is market positive.

Last week, the S&P 500 tested to the support at the 50-Day MA and it held posting a DOJI Friday, that means there is a 50/50 chance it can test again.

The leaders’ patterns are good in here and that augurs a move on the September highs.

Negatives/Positives

Some chips look great, some are trying to hold, some are struggling, and some are bad. Watch the chips if they go, the market will follow.

Trade can be a negative or a positive on a Tweet. Northside if a deal is struck, flat to Southside if a deal is less than likely.

The leaders and indexes are set up to make the move North. If the bounce has strength this time the action will take out the September highs, or they may test again on the trade headline.

The plays are on the leaders that held during the selling, they are the strongest market issues.

The Big Q: Will the leading chips have the strength to run the rally?

The Big A: Pay attention and always take what the market gives.

Remember, it is your money so, your responsibility.

The Bulls Vs The Bears

Sentiment Indicators

VIX: 16.04; -3.06.
VXN: 19.10; -2.93 
VXO: 18.00; -3.87 

Put/Call Ratio (CBOE): 1.24; -0.04. Note: 4 of 5 sessions over 1.0. The more extreme, the better chance of a rebound if the other indicators align. 

The Bulls are at: 55.5 Vs 56.4 last

The Bears are at: 17.8 Vs 17.8 last

Support and Resistance

HeffX-LTN’s overall technical outlook for Wall Street’s major US stock market from the support and resistance perspective is Bullish in here.

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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