Commentary: Paul Ebeling on Wall Street
$DIA, $SPY, $QQQ, $VXX
At the weekend the G-20 meeting concluded with the US asserting more nationalistic positions.
That brings up the Currency markets, and how they will react to the communique?
The FOMC rate hike did little to move the market as it was factored in already.
The US major stock market index patterns are solid and in position to continue North.
Leadership keeps bringing up new leaders, this is healthy action.
The groups that are leading are as follows: Bio-techs, Semiconductors, and Software.
The patterns are good to great, breakouts are happening then testing, as they should, no breakouts met with immediate selling.
The Wall Street sellers have been and continue standing aside, unwilling to step in front of the moving Bull market.
The market faces one report after another, a Fed decision, geopolitical issues, fiscal economic attempts, and it is criticized for not using these as a catalyst to surge or correct.
Some speculate that The Trump Administration’s deregulation and tax policies could get pushed back , likely not, so the market is not selling off.
Instead we are seeing it produce new leaders to come the lead, as Oil dropped out, metals consolidate, and transports are struggle, the financial stocks are holding their own.
The current Wall Street leadership is enough to keep the market in Northside trends. So, play the good positions for as long as they last and rotate to the new leaders as them come on.
Remember, always take what the market gives, now it is giving.
The Bulls Vs The Bears
VIX: 11.28; +0.07
VXN: 10.57; -0.39
VXO: 9.15; -0.14
Put/Call Ratio (PCR) CBOE: 0.96; +0.05
The Bulls Vs The Bears
Saw impressive back to back drops in Wall Street Bulls all the way to 53.4, almost 10 pts in just 2 weeks. Market pulled back in a normal test and sentiment falls
Market climbing the Wall of Worry
The Bulls are at 53.4 Vs 57.7 last
The Bears are at 17.5 Vs 17.3 last
Support and Resistance
DJIA close at: 20,914.62
The 50-Day EMA: 20,424
The 50-Day SMA: 20,371
20,126 the Jan 2017 high
20,101 a Jan 2017 high
19,994 a Jan 2017 high
19750 the Jan 2017 low
The 200-Day SMA: 18,977
S&P 500 close: 2378.25
2340 the Y 2016 trendline
The 50-Day EMA: 2328
The 50-Day SMA: 2323
2301 a Jan 2017 high
2280 from Jan 2017
2278 the Dec 2016 high
2213 the Nov 2016 high
The 200-Day SMA at 2202
NAS Comp closed: 5901.00
5912 the Mar 2017 all-time high.
5800 from the Feb 2017 lows
5661 the late Jan 2017 upper gap mark
The 50-Day EMA: 5731
The 50 Day SMA: 5723
5652 the Y 2016 trendline
5601 the Jan 2017 lower gap mark
5404 the Nov 2016 high
5340 the Oct 2016 high
The 200-Day SMA: 5321
Have a terrific week.