Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

$DIA, $SPY, $QQQ, $VXX

Earnings season has started and financial results last week were not bad, but the market paid no attention. The media pundits are calling the end of The Trump Rally, and for the same major crash that they were calling for last November, others dialed back their Bullishness.

There is a lot of noise in the air, though healthy pullback in here would be welcomed. That is a low probability play, not one we can count on in here.

The market is not being destroyed by its lateral move that has been on since 1 March, as it consolidates the big run.

The NAS Comp is healthy, S&P 500 and DJIA are trading above over their March lows.

The areas that are good are good, like bio-techs. Retail looks a winner, as many stocks are pretty solid, but the big winner is Amazon.com (NASDAQ:AMZN), Jeff Bezos is now the world 2nd richest man.

Heading into this week look North and South for plays as they set up. Always let winners work.

The market transitioning, looking soft in spots, but has not cracked yet. So, don’t be anxious, you cannot pressure it, if there is test this week and breaks below support Southside setups will show up if relief bounces fade.

If the market reverses again, which it may, there will be more Northside from the solid upside patterns and others setting up after
that test.

So, pay attention, keep watching the sectors, see how they set up, up or down it does not matter.

Always take what the market gives, the name of this Wall Street Game is to make money.

 

The Bulls Vs The Bears

Sentiment Indicators

VIX: 15.96; +0.19
VXN: 15.9; +0.34
VXO: 14.4; +1.37

Put/Call Ratio (PCR) CBOE: 0.98; +0.03

The Bulls Vs The Bears

Bulls moves back up to the higher end of the range after a week of market doubt, confidence stabilized. But, do not forget the 7 weeks over 60% and is historically a market top indicator, but not a timing indicator.

The Bulls are at: 56.3 Vs 55.8 last

The Bears are at: 17.5 Vs 18.3 last

 

Support and Resistance

DJIA close: 20,453.25

Resistance
The 50-Day EMA: 20,542
The 50-Day SMA: 20,655
21,100 a Mar 2017 high
21,169 the all-time high

Support:
20,412 the Mar 2017 low
20,126 a Jan 2017 high
20,101 a Jan 2017 closing high.
19,994 a Jan 2017 high
19750 from the lows of the Jan 2017 range
The 200-Day SMA: 19,254

 

S&P 500 close: 2328.95

Resistance
The 50 -Day EMA: 2341
The 50-Day SMA: 2352
2379  the Y 2016 trendline
2390 a Mar 2017 high
2401 the all-time high

Support
2322 the Mar 2017 low
2301 a Jan 2017 high
2298 a Jan 2017 high
2280 from Jan 2017
2278 the Dec 2016 high
The 200-Day SMA at 2228
NAS Comp close: 5805.15

Resistance
The 50-Day SMA: 5832
5928 the all-time high.

Support:
The 50-Day EMA: 5802.20
5800 from the Feb 2017 lows
5747   the Y 2016 trendline
5661 the late Jan 2017 upper gap mark
5601 the Jan 2017 lower gap mark
The 200-Day SMA: 5417

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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