Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

$DIA, $SPY, $QQQ, $VXX

Early Briefing, World Stock Markets

The Inauguration of Donald Trump as the US President kept the DJIA at 19827.25, 0.48% in the Green but the range of 19700-18000 remained intact.

Similarly, DAX at 11630.13, +0.29% stayed in its 5-week range of 11400-700 for another session. Unless there is an immediate positive trigger, the range may continue for another couple of sessions before rising towards 11800-900.

Among the Asian markets

Shanghai at 3132.01, +0.28% has been rising towards the target of 3165-75 though it has to break above the interim resistance around 3150, the strength of JPY (113.52) has pulled down Nikkei to 18934.57, -1.06%. A failure to stay above 18850 may negate expectations of the corrective phase ending soon and open more Southside action.

Nifty at 8349.35, -1.02% has resolved the 5-day range of 8370-8460 to the Southside, and may test 8300 and the support zone of 8270-50 in here.

It is Monday morning, Donald J. Trump is our new President, and looking to Y 2017 and beyond there will be a significant
reorganization of US alliances in the world.

Over the weekend I learned that any of the smaller EU economies are asking the question  ‘why are we in this Union?’

Then there us and Russia, Israel and Iran, and China.

The Big Q: What what will the markets waiting on some real policies to give us a new buy signal?

As I write this report at 4:15a EST on 23 January, the 3 major US stock market index futures are trading flat to unchanged with a Bearish bias.

There are good stocks in good position to move North, they just need something to trigger them.

Earnings season is in full swing now, but so far they are impacting individual  only stocks, not the overall market.

With the indices working  laterally near all time highs, it could be that the earnings results will give the reasons to buy.

Keep in mind that The Bulls marked at 60% recently and again last week, and how that may effect The Trump Rally.

Pay attention in here.

 

The Bulls Vs The Bears

Sentiment Indicators

VIX: 11.54; -1.24
VXN: 13.04; -1.02
VXO: 10.5; -1.11

Put/Call Ratio (PCR) CBOE: 1; +0.06. Back to 1 a high level of apprehension/protection buying.

The Bulls are at 60.60 Vs 58.6 last

The Bears are at 17.3 Vs 18.4 last

 

Support and Resistance

DJIA close: 19,827.25

Resistance
19,987.53 the Dec 2016 high

Support
19750 the low of the Dec/Jan trading range
The 50-Cay SMA: 19,497
The 50-Day EMA: 19,491
18,669 the Aug 2016 high
18,595 the July 2016 high
The 200-Day SMA: 18,443

 

S&P 500 close: 2271.31

Resistance
2278 the Dec 2016 high

Support
2262 the Y 2016 trendline
The 50-Day EMA: 2236
The 50-Day SMA: 2233
2213 the Nov 201 high
2194 the Aug 2016 high
2175 the Jun 2016 high
The 200-Day SMA: 2150

 

NAS Comp close: 5555.33

Resistance

NIL

Support
5480 the Y 2016 trendline
The 50-Day EMA: 5425
The 50-Day SMA: 5410
5404 the Nov 2016 high
5340 the Oct 2016 high
5288 the Sept 2016 high
5271 the Aug 2016 high
5232 the Y 2015 high
5170 the Oct 2016 low
5162 a Nov 2016 high
The 200-Day SMA: 5139

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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