Home 2021 Commentary: Paul Ebeling on Wall Street, the Trend is Bullish

Commentary: Paul Ebeling on Wall Street, the Trend is Bullish

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There is a saying on Wall Street that goes like this, “The trend is your friend until the end.” Well, the trend in the S&P 500 has been extremely Bullish over the past 3 wks, and the market respects the trend”–Paul Ebeling 

What happened last week

We saw new highs on the S&P 500, DJIA and the mid-cap S&P 400.

The NAS Comp, despite all the help from the mega-cap stocks, still has not hit a fresh high over the February high mark. Meanwhile, the PHLX Semiconductor Sector (SOX) continues to look good. Keeping an eye on its set up.

Technical Analysis

S&P 500 rallied, tested, rallied and tested in its uptrend channel. The S&P 500 is now at the upper trend line, as it moved to its new high. After 3 wks of Northside at the upper channel line, it may struggle a bit here, but it is still in a solid uptrend.

NAS Comp is closing in on its own new highs at the February all-time high. This has occurred just as the big NAS names that led it here appear to be slowing the moves a bit. The NAS has been turned back at each Key resistance mark on its way back up. The February high is a good place for it to pause, refresh, consolidate and reset the Northside move.

What to expect this week

FactSet estimated that S&P 500 companies would report aggregate earnings per share growth of 28% for Q-1, for the biggest rise in more than 10 yrs. Of the handful of S&P 500 companies that reported results last week, none issued negative earnings per share guidance for Q-2, and 5 offered positive guidance

Lots of earnings reports on tap

  • Monday: Coca-Cola (KO) before market open; IBM (IBM), United Airlines (UAL) after market close
  • Tuesday: Johnson & Johnson (JNJ), Harley-Davidson (HOG), Abbott Laboratories (ABT), Procter & Gamble (PG), Lockheed Martin (LMT), Philip Morris (PM) before market open; Netflix (NFLX) after market close 
  • Wednesday: Anthem (ANTM), Nasdaq (NDAQ), Halliburton (HAL), Verizon Communications (VZ) before market open; Whirlpool (WHR), Chipotle (CMG), Spirit Airlines (SAVE), Las Vegas Sands (LVS) after market close 
  • Thursday: Dow Inc (DOW), DR Horton (DHR), Alaska Air Group (ALK), Blackstone (BX), AT&T (T), Quest Diagnostics (DGX), American Air Lines (AAL), Valero Energy (VLO), Biogen (BIIB), Southwest Airlines (LUV), Union Pacific (UNP) before market open; Boston Beer Company (SAM), Snap (SNAP), Intel (INTC) after market close
  • FridaySchlumberger (SLB), American Express (AXP), Honeywell (HON), Kimberly-Clark (KMB

Some Wall Street firms warn of the potential for a healthy 5% to 8% pullback across the board, it is your money, so your responsibility, pay attention in here and for the rest of Y 2021. And always take what the market gives.

Have a healthy week, Keep the Faith!

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Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is 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.