Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

$DIA $SPY $QQQ $RUTX $VXX

We are deep in earnings season. Stay tuned daily.

What happened last week

Facebook (NASDAQ:FB) struggled as caught a bid and rallied The DJIA and the S&P 400 tested the 50-Day MA, but the NAS Comp and S&P 500 did not, but rebounded.
Q-4 GDP came in at 2.1% the slowest GDP growth rate since Y 2016.
Stocks with solid patterns have posted good moves.
AMZN surged 200 pts.

The Big Q: Will it set the tone for the rest of the market?

Stocks opened lower Friday, and they did trade in a volatile range through mid-day. Early in the afternoon, they approached the prior session’s highs and then broke higher with 1.5 hrs left. By the time that the markets closed, the stocks had rallied to the session’s highs.

Technical Analysis: NAS Comp and the S&P 500; The NAS Comp and the S&P 500 did not make the 50-Day EMA. The NAS Comp tested the 20-Day EMA and bounced. The S&P 500 remained between the 50-Day and 20-Day MAs before moving up over the 20-Day MA on the close.

The Super Bowl is over so we now turn our attention to the stock market. Chinese stocks, which were closed last week for the Lunar New Year, are falling, but US stock futures are not.

Because China’s stock markets were closed last week, they are now playing catch up, doing in 1 day what would have taken a week to accomplish.

With investors wary of a weekend of coronavirus news and returning to a plunging Shanghai composite, Friday’s stock market pullback was understandable, but the trend is up.

The DJIA fell 2.5%, the S&P 500 index 2.1% and the NAS Comp 1.8%.

Coronavirus: There are less than 200 coronavirus cases outside of Mainland China, mostly in Asia. The US has 8 confirmed coronavirus cases.

Note: yearly there are 14,000 to 60,000 deaths in the US from flu.

The DJIA fell 2.5%, the S&P 500 index 2.1% and the NAS Comp 1.8%.

Have a terrific week.

 

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Paul Ebeling

Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he it the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.