Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

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

FLASH: Friday saw S&P 500 and NAS break. Already Bearish in the rollovers, Friday they gapped below the 200-Day SMA. Broke the neckline in the head and shoulders Wednesday, held the 200-Day SMA that session and Thursday, ready to bounce. Then the next bad news and the 200-Day SMA faded.

It is a matter of time as to when the indices become oversold again, and the news is digested to relief bounce. A 200-Day SMA test would be a nice setup for more Southside plays and we will watch for that at the start of this week.

Money is still finding the Northside as it rotates.

The healthcare and drug sectors are receiving some money along with social media, software and insurance. So, look at some plays on them.

The focus is to the Southside now, and as this week opens we will look for more Southside setups. Ideally, an oversold bounce early is best, but really see more selling early week. We will see what kind of entries the market gives, and we always take what the Wall Street gives. 

Remember, it is your money so, your responsibility, pay attention.

The Bulls Vs The Bears

Sentiment Indicators

VIX: 18.71; +1.41.
VXN: 23.23; +1.55 
VXO: 20.98; +1.56 

Note: VIX not spiking on selling, as there are more issues to resolve that this range trading action at the head and shoulders neckline has not been able to rectif.

Put/Call Ratio (PCR) CBOE: 1.19; +0.09. 18 of 21 sessions closing at 1.0 or better.

The Bulls are at: 49.0 Vs 49.5 last

The Bears are : 17.3 Vs 17.2 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 Neutral 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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