Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

$DIA, $SPY, $QQQ, $VXX

Okay the PPT, aka the Plunge Protection Team,  entered the market, blunted the selloff 2 Fridays ago, as FAANGs and other big NAS stocks held support.

As that happened, managed money moved into DJJIA, driving it to new highs that held through Friday’s close.

Notably, the leading NAS Comp and SOX test the 50-Day MA after moves North, the other indices that  lagged took to leadership and put in their own new highs.

Rotation, Rotation, Rotation

We will soon see if the 2X tap at support on many of the FAANG’s, large tech, semiconductor stocks holds and they move up after a 50-Day MA test.

In a upward trend it is normal that there be a series of moves up the 10 and/or 20-Day EMA, then after 4 to 5 such moves, a deeper test of
the 50-Day MA.

And if the trend is to hold, that then acts as support and starts a new set of moves up to and over the 10 and 20-Day EMAs.

If they do move up and the DJIA, S&P 500 move up too, that is a strong combo and negates the Market Rally Over pundit and media predictions.

There are good (nice) patterns in stocks set up to join The Trump Rally’s extension. Are watching for those breakouts.

Monday, 19 June at 2:18a EDT as I write this report the major US stock market index futures are flat with a Bullish bias.

Remember, always take what the market gives, and it is your money, so it is your responsibility.

 

The Bulls Vs The Bears

Sentiment Indicators

VIX: 10.38; -0.52
VXN: 16.3; +0.1
VXO: 8.89; -0.84

Put/Call Ratio (PCR) CBOE: 1.09; +0.11. Jumped back over 1.0 on the close but  this was more a function of Quad Witching expiries.

The Bulls Vs The  Bears

This indicators is moving up and down after hitting over 60 for several weeks this Spring. This kind of seesaw action shows confused and
apprehensive investors. Looks as if those weeks in the 60’s may be weighing.

The Bulls are at 50.0 Vs 55.8 last

The Bears are at 18.6 Vs 18.3 last

 

Support and Resistance

DJIA close:21,384.28

Resistance:

None

Support
21,169 the Mar 2017 high
The 50-Day EMA: 20,978
20,553 a May 2017 low
20,547 a Apr 2017 low
20,412 the Mar 2017 low
20,400 a April 2017 low.
20,126 a Jan 2017 high
20,101 a Jan 2017 high.
19,994 a Jan 2017 high
The 200-Day SMA: 19,821

 

S&P 500 close: 2433.15

Resistance
2439 the Jun 2017 all-time high
2464 the Y 2016 trendline

Support
2406 the May 2017 high
2401 the Mar 2017 high
The 50-Day EMA: 2399
2352 the May 2017 low
2348 the Apr 2017 low
2329 a Mar 2017 low
2322 the Mar 2017 low
2319 the 78% Fibo retrace
2301 a Jan 2017 high
2298 a Jan 2017 high
2280 a Jan 2017 low
The 200-Day SMA: 2280

 

NAS Comp close: 6151.76

Resistance
6205 the May 2017 high
6341.70 the Jun 2017 all-time high.

Support:
The 50-Day EMA: 6099
6170 a Jun 2017 high
5996 the May 2017 low
5946  the Y 2016 trendline
5937 the Apr 2017 high
5915 a Apr 2017 high
5910 a Apr 2017 low
5800 a Feb 2017 low
5661 a Jan 2017 high
The 200-Day SMA: 5631

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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