Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

$DIA, $SPY, $QQQ, $VXX

Early Briefing: Overall some correction can/will/should/may come into global equities after the strength seen last week. See some sideways action coming in the early sessions this week before more Northside momentum takes hold.

Last week we saw the break North, so now we could see a test, then a follow through on the move North, then a solid buy signal

We saw and are seeing a whole lot of action from the Trump  Administration, and expect to see that continue this week, the market may up its pace this week as earnings continue post good numbers.

The market made a good move, is testing it, and it will tell us if it can continue.  After the break North we look at plays work with the continuation of the breakout as that has been dominant pattern for about 6 weeks.

The market knows, so pay attention and tune out the noise.

This is a to make money at,do your work and make some.

The Bulls Vs The Bears

 

Sentiment Indicators

VIX: 10.58; -0.05
VXN: 12.3; -0.34
VXO: 9.87; +0.48

Put/Call Ratio (PCR) CBOE: 1; +0.13. Back up to 1 Friday on protection buying after a week that saw the ratio dip into the 70’s, the lowest it has been for a long while. Suggested not much worry on the week after weeks of elevated put buying.

Note: The Bulls fell back below 60, making it 2 and 2 for the past 4 weeks. It has marked 60%, and that typically signals a move is working on its last leg before a larger correction.

The Bulls are at 58.2 Vs 60.60 last

The Bears are at 17.5 Vs 17.3 last

 

Support and Resistance

 

DJIA close: 20,093.78

Resistance

NIL

Support
19,994 – 19,999 Jan 2017 highs
19750 the Jan 2017 range los
The 50-Day SMA: 19,628
The 50-Day EMA: 19,583
18,669 the Aug 2016 high
18,595 the Jul 2016 high
The 200-Day SMA: 18,502

 

S&P 500 Close: 2294.69

Resistance

NIL

Support
2282 – 2280 from Jan 2017
2272 the Y 2016 trendline
The 50-Day EMA: 2245
The 50-Day SMA: 2245
2213 the Nov 2016 high
2194 the Aug 2016 high
2175 the Jun 2016 high
The 200-Day SMA: 2156

 

NAS Comp Close: 5660.78

Resistance

NIL

Support
5601 the Jan 2017 lower gap mark
5500 the Y 2016 trendline
The 50-Day EMA: 5462
The 50-Day SMA: 5450
5404 the Nov high
5340 the Oct 2016 hhigh
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: 5158

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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