Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

$DIA, $SPY, $SDS, $QQQ, $VXX

The NAS Comp marked a fresh ATH (all-time high) again, and what we have seen in this market is that new highs are sold and buyers come back and pick up the dip. So, that being the case, the move is to bank some gains, and let the action back and fill then come back later.

Over this US Holiday weekend North Korea tested a 6th bomb, this 1 it claimed to be hydrogen and warhead ready. They might be able to get it up, but the intel says they still do not know how to get it to reenter and hit a predetermined target

Nevertheless it is a bit grim, plus we heard all weekend about floods, a new hurricane named Irma headed for Miami, a massive wildfire in Los Angeles, and Government leaders picking at one another.

My sainted Mother would say, “Never a dull moment.”

But, the headlines are dominated by NKorea’s nuclear ambitions, and we will have to see
how the market handle this at the open.

Currently at 3:30a EDT the S&P 500 mini futures are trading at -4.75 so slightly Bearish

This market, through it all finds its same pattern; the large cap indices hold intact and continue North doing what they have done in other moves throughout The Trump Rally.

And means expecting a continued move higher in the uptrend channel by NAS Comp, S&P 500 and the DJIA followed by reversal of the new highs, the dip and buying at the pivot.

That is what the big trader’s algorithm programming indicates, despite all of the Noise of a selloffs that will not bounce, the indices have bounced on that pattern.

So, the classic strategy: let the upside run, then bank the highs, wait for a good re-entry, pay attention, look for breakouts.

There are great stocks in good position to move within the established patterns of the good stocks as the leaders have shrunken over the last few months. So, do not stretch the line up in here.

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

 

The Bulls Vs The Bears

Sentiment Indicators

VIX: 10.13; -0.46
VXN: 14.1; -0.23
VXO: 8.94; -0.32

Put/Call Ratio (PCR) CBOE: 0.83; -0.23

The Bulls Vs The Bears

The Bulls are off 8 points in 4 weeks after rallying back to 60 for 2 weeks. We are waiting to find out what it means.

The Bulls are at 49.5 Vs 48.1 last

The Bears are at 19.1 Vs 18.3 last

 

Support and Resistance

DJIA close: 21,987.56

Resistance
22,086 an Aug 2017 high
22,179 the Aug 2017 all-time high

Support
The 50-Day EMA: 21,705
21,681 the Jul 2017 high
21,638 a Jul 2017 high
21,529 the Jun 2017 high
21,169 the Mar 2017 high
The 200-Day SMA: 20,748

 

S&P 500: Closed at 2476.55

Resistance
2453 the Jun 2017 high
2491 the Aug 2017 all-time high
2498 the upper line from 9 March 2009 reversal uptrend channel

Support
The 50-Day EMA: 2448
2409 the Jul 2017 low
2406 the May 2017 high
2401 the Mar 2017 high
The 200-Day SMA: 2362

 

NAS Comp close: 6435.33

Resistance
6461 the Jul 2017 all-time high

Support
6342 the Jun 2017 high
6300 a Jun 2017 high
The 50-Day EMA: 6285
The Y 2016 trendline: 6217
6205 the May 2017 high
5996 the  May 2017 low
5937 the Apr 2017 high
5915 the Mar 2017 high
5910 an Apr 2017 low
The 200-Day SMA: 5865

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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