Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

$DIA, $SPY, $QQQ, $VXX

Stocks hit fresh records in a shortened trading session Friday, investors continued to bet on a pickup in economic growth and rising corporate profits.

The gains on Wall Street were modest and broad, with nearly every sector in the Standard and Poor’s 500 index rising. Utilities were up 1.4%

Indexes have been rising since the presidential election, and the close on Friday capped a 3rd week running of S&P 500 gains. The index is up 4% MTD.

Small-company stocks continued to outpace the market. The Russell 2000 index, which has surged 16% since 3 November, increased for the 15th day running, its longest winning streak since early Y 1996.

Wall Street investors anticipate that plans by President-elect Donald Trump to cut taxes, reduce regulations and spend on infrastructure will speed economic growth. Investors are also reacting to recent signs of a pickup in growth in several other major economies around the world.

There has not been a synchronized bounce in growth across the globe ever in this so called economic 8 year recovery. This is the 1st time we are seeing all the economic driver going North at the same time, the financial markets are reflecting that.

Friday, stock trading closed at 1:00p EST, trading was thin.

The 3 major US stock market indexes finished at: DJIA+68.96 at 19152.14, NAS Comp +18.24 at 5398.92, S&P 500+8.63 at 2213.35

The Bulls are near the last high that led to some selling, but really a move near 60 is where the most headwinds are met.

It will be healthy to see a pull back in here.

 

The Bulls Vs The Bears

 

bulls-and-bears-thestockradio

Sentiment Indicators

VIX: 12.34; -0.09
VXN: 14.39; +0.13
VXO: 12.08; +0.04

Put/Call Ratio (PCR) CBOE: 0.8; -0.16 , 12 of 20 sessions over 1.0 on the close Friday.

Note: the Bulls are up 13 pts in 3 weeks, quickly moving back to  a level getting close to extreme for this market. The Bulls are near the last high that led to some selling, but really a move near 60 is where the most headwinds are met.

The Bulls are at 55.6 Vs 51.0 last

The Bears are at 21.6 Vs 23.5 last

 

Support and Resistance

support-resistance-basics

 

DJIA close:  19152.14

Resistance

NIL

Support
The 10-Day EMA:18,713
18,669 the Aug 2016 high
18,595 the Jul 2016 high
The 50-Day EMA: 18,370
18,351 the May 2015 high
18,288 the Mar 2015 high
The 50-Day SMA: 18,280

 

S&P 500 close: 2213.35

Resistance

NIL

Support

2194 the Aug 2016 high
2175 the Jun 2016 high
The 10-Day EMA at 2165
The 50-Day EMA at 2148
The 50-Day SMA at 2146

 

NAS Comp close: 5398.92

Resistance

NIL

Support

5340 the Sept 2016 high.
5309 an Oct 2016 high
5288 the Sept 2016 high
5275 the Y 2016 up trendline
5271 the Aug 2016 high
The 50-Day SMA: 5243
5232 the Y 2015 all-time high
The 50-Day EMA: 5222

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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