Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

$DIA, $SPY, $QQQ, $VXX

In this market of good recoveries there are leaders that look good and sectors that look very good in here.

Last Wednesday, the caution flag was raised and waved, and we will soon see how the market responds this
week. In the past we have seen the markets shrug off the dips and continue North

The Big Q: What will be the result of “Comey the Nut Job’s”public/private testimony on the Hill?

The Big A: The market will tell us very soon, stand by and pay attention.

We have see issues like this in the past and over and over again such market jolt have been easily overcome. As I write this at 11:00p PDT on Sunday, 21 May the US major market index futures are trading flat with a Bearish bias.

Our Northside positions are working, there are more plays setting up, if they move then they come into play. It is the same with the Southside plays

The Wall Street Game is scope out the leaders, and follow them, the caveat this week though is cautiously given the jerk like action flowing constant Fake News.

The major Oil industry stock are setting up to move higher with the price of Crude Oil and the huge deals made in Saudi Arabia at the weekend, President Donald Trump is both a very good businessman and politician to boot.

This week the market has to hold and move higher again, it will struggle with the rotation. But, it is a positive there are new groups coming in, old ones shaking out, so we will see.

We always take what the market gives, pay attention, caution.

 

The Bulls Vs. The Bears

 

Sentiment Indicators

VIX: 12.04; -2.62
VXN: 13.86; -1.8
VXO: 11.07; -1.62

Put/Call Ratio (pCR) CBOE: 0.99; -0.14. The week saw the ratio jump back over  1.0 Wednesday and Thursday. This is an inverse indicator, i.e. when there are more puts traded than calls it starts indicating selling is over. It has to have a series of such closes to mean anything. The candles will tells when a Homing Pigeon is made.

Bulls and Bears: Bulls faded slightly but not much. And remember the string of 60+ closes from early Y 2017. That typically results in a correction at some point.

The Bulls are at 58.1 Vs 58.7 last

The Bears are at 17.1 Vs 17.3 last

 

Support and Resistance


DJIA close: 20,804.84

Resistance
21,169 the Mar 2017 all-time high

Support
The 50-Day SMA: 20,775
The 50-Day EMA: 20,738
20,553 15 May 2107 low
20,547 Apr 2017 lower Gap mark
20,412 the Mar 2017 low
20,400 a Apr 2017 low.
20,126 the Jan 2017 high
20,101  a Jan 2017 high.
19,994 a Jan 2017 high
19750 a Jan 2017 low
19,732 the Jan 2017 low
The 200-Day SMA: 19,571

 

S&P 500 close: 2381.73

Resistance
2419 the Y 2016 trendline
2401 the Mar 2017 high
2406 the May 2017 all-time high

Support
The 50-Day SMA: 2369
The 50-Day EMA: 2367
2352 the May 2017 low
2348 the Apr 2017 lower Gap mark
2329 an Apr 2017 low
2322 the Mar 2017 low
2319 is the 78% Fibo retrace
2301 a Jan 2017 high
2298 a Jan 2017 high
2280 from Jan 2017
2278 the Dec 2016 high
The 200-Day SMA: 2257

 

NAS Comp close: 6083.70

Resistance
The 10-Day EMA: 6088
6170 the all-time high

Support
5996 the May 2017 low
5937 the Apr 2017 high
The 50-Day EMA: 5965
The 50-Day SMA: 5954
5915 the Apr 2017 range top
5910 an Apr 2017 lower Gap mark
5864 the Y 2016 trendline
5800 the Feb 2017 low
5661 a Jan 2017 upper Gap mark
5601 the Jan 2017 lower Gap mark
The 200-Day SMA: 5544

Have a terrific week.

 

 

 

 

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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