Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

$DIA, $SPY, $QQQ, $VXX

Lots of data happening this week.

Consumer Confidence, New Home Sales, Durable Goods, GDP Q-2 estimate, and the FOMC meet Wednesday.

A relatively strong GDP estimate at 2.8% is anticipated.

If that happens, it may toughen up the FOMC’s statement on Wednesday, as the Fed may feel the market misunderstood Chairwoman Yellen’s congressional testimony and desires to redirect the focus away from the Fed having turned more Dovish to compensate for economic and political risk. But, not likely.

Nevertheless, Wednesday could be more interesting than usual in terms of  the typical FOMC meeting.

The major US stock market indices started a modest test, a very normal after marking new highs. That should continue and set up for a new break North once finished.

The  NAS Comp and SOX have led most of the move, and they are important for the rally’s further advance. Both are in orderly tests, and why not, as the Fed is behind this market, so easy test, and resume The Trump Rally.

There are good plays setting up that have lots of room to rise.

Earnings season is here and some of these plays are heading toward strong results. Shayne and I like the possibilities in here.

Remember, always take what the market gives.

 

The Bulls Vs The Bears

Sentiment

VIX: 9.36; -0.22
VXN: 14.36; 0
VXO: 7.77; -1.23

Put/Call Ratio (PCR) CBOE: 0.74; 0

The Bulls Vs The Bears

Bulls ran almost 8 points close to the highs on the year.

Bears fell almost 2 points, falling toward multiyear lows.

The Bulls are at 57.8 Vs 50.0 last.

The Bears are at 16.7 Vs 18.6 last.

 

Support and Resistance

DJIA close: 21,580.07

Resistance

None

Support
21,535 the all-time high
The 20-Day EMA: 21,489
The 50-Day EMA: 21,294
21,169 the Mar 2017 high
20,553 the May 2017 low
20,547 an Apr 2017 low
20,412 the Mar 2017 low
20,400 an Apr 2017 low
The 200-Day SMA: 20,205

 

S&P 500 close: 2472.54

Resistance

None

Support
The 10-Day EMA: 2458
2453 the Jun 2017 high
2439 a Jun 2017 high
The 50-Day EMA: 2427
2406 the May 2017 high
2401 the Mar 2017 high
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
The 200-Day SMA: 2314

 

NAS Comp close: 6387.75

Resistance

None

Support
6341.70 the Jun 2017 high
The 10-Day EMA: 6316
6300 a Jun 2017 high
6205 a May 2017 high
The 50-Day EMA: 6191
6078 the Y 2016 trendline
5996 the May 2017 low
5937 a Apr 2017 high
5915 a Apr 2017 high
5910 a Apr 2017 low
5800 the Feb 2017 low
The 200-Day SMA: 5756

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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