Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

$DIA, $SPY, $QQQ, $VXX

Last Friday we saw the start of some rotation. With good patterns set up in manufacturing, construction, and other old economy stocks sectors, it will not surprise to continue seeing smart money flow there breaking them higher.

Not seeing managed money leaving the market, but seeking other areas, that have been under quiet accumulation during the ascent of the FAANG’s

Many money managers lament the surge in that narrow leadership and have put money into these other areas, hence those accumulation patterns. That being the case then now anticipate seeing them make breaks North.

The recent leaders are out of the Northside mix yest, as they have been able to hold near support and could bounce back again.

Will look to see if those same managers try buying the big names again, if not, then the Big Q is will the PPT move back in?

Whether the PPT acts or not, and if the recent leaders move North again, participants can always move into some more if they hold and the managed money cannot resist the FAANG’s. If they cannot resist then there is more Northside scope.

If it does resist and rotate, we will watch carefully where that money goes, into weakened leadership or to the sidelines. A move to the sidelines will signal a 8-10% correction as I see it.

As I said above, some good patterns in other sectors have built up to breakouts, other areas are trying to turn up after a long run being out of favorm and now priced favorably.

Remember the rule about buying low and selling high.

Also be cautious, it is your money and your responsibility, tune out the Noise.

 

The Bulls Vs The Bears

Sentiment

VIX: 10.7; +0.54
VXN: 18.13; +4.47
VXO: 10.39; +0.97

Put/Call Ratio (PCR): 1.06; +0.36. Some fear has returned.

The Bulls Vs The  Bears

The Bulls fell as the market rallied and now The Bulls rallied back as the market dipped. Humm

The Bulls are at 55.8 Vs 50.0 last

The Bears are at 18.3 Vs 19.2 last

 

Support and Resistance

DJIA close: 21,271.97

Resistance

None

Support
21,169 the Mar 2017 high
The 50-Day EMA: 20,898
20,547 a lower Gap mark from Apr 2017
20,412 the Mar 2017 low
20,400 a Apr 2017 low.
20,126 the Jan 2017 intra-day high
20,101 a Jan 2017 high.
19,994 a Jan 2017 high
19750 a Jan 2017 low
The 200-Day SMA: 19,749

 

S&P 500 close: 2431.77

Resistance
2439 the all-time closing high
2453 the Y 2016 trendline

Support
2406 the May 2017 high
2401 the Mar 2017 high
The 50-Day EMA: 2391
2352 the May 2017 low
2348 the Apr 2017 lower Gap mark
2329 the Apr 2017 low
2322 the Mar 2017 low
2319 the 78% Fibo retrace
2301 a Jan 2017 high
2298 a Jan 2017 high
2280 from Jan 2017
2278 the Dece 2016 high
The 200-Day SMA: 2274

 

NAS Comp close: 6207.92

Resistance
6341.70 the Jun 2017 all-time high.

Support
6205 the May 2017 high
The 50-Day EMA: 6081
6170 the May 2017 high
5996 the May 2017 low
5937 the Apr 2017 high
5925 the Y 2016 trendline
5915 a Apr 2017 high
5910 a Apr 2017 low
5800 a Feb 2017 low
5661 a Jan 2017 upper Gap mark
The 200 day SMA at 5614

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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