Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

$DIA, $SPY, $QQQ, $VXX

Earnings and Data the focus on Wall Street this week.

On the Data Front:

Durable goods, New home sales, GDP, Michigan Sentiment Indicator (MSI) final October.

On the Earnings Front:

So far the responses were tepid but have not hurt the market. The financial held and are now moving higher: C, BAC, GS, WFC, MS…

NFLX results were not super, but held support as the financials did do, and NAS Comp is looks OK.

Note: It was not earnings that drove stocks higher, it was the lack of sellers and steady buying.

In  a typical market, the participants get tired of the earnings calls, pauses, and starts to consolidate. This is not a typical market, as it has been breaking higher daily, as it ignores the soft and bad news, no matter what it is.

When there is a test, it has been shaking them off, and breaking higher, to continuing records across the board. Seems there are no negatives in here.

I read this week’s action to be the same, the momentum looks to continue in this Trump Rally, the bids are in place, and the rule if there is even a bit of a pause, “buy it”.

This Monday is the follow up to Friday’s options expiry, and usually it tends to trade lower on that Monday, but with this market that has been a buying opportunity, at this hour the futures are flat to unchanged with a Bullish bias.

The bids are in as participants look eager.

That being the case, then look at Northside quality plays, that’s a job, as many stocks are extended. Many good stocks have rallied and are holding the rallies, these are not places enter new plays.

So, in this case, prudence says, let winning positions keep winning.

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

 

The Bulls Vs The Bears

Sentiment Indicators

VIX: 9.97; -0.08
VXN: 14.32; -0.32
VXO: 7.54; -0.30

Put/Call Ratio (PCR) CBOE: 0.81; -0.16

The Bulls, The Bears

  • The Bulls held 60 after running there last week.
  • The Bears held the 15 after slumping there last week
  • Note: 60+ reading hobbles the sell side of the market.

The Bulls are at 60.0 Vs 60.4 last

The Bears are at 15.2 Vs 15.1 last

 

Support and Resistance

DJIA closed: 23,328.63

Resistance

None

Support
The 10-Day EMA: 23,004
22,420 the Sept 2017 high
The 50-Day EMA: 22,402
22,179 the Aug 2017 high
22,086 an Aug 2017 high
21,681 the Jul 2017  high
21,638 a Jul 2017 high
21,529 the Jun 2017 high
The 200-Day SMA: 21,252

 

S&P 500 close: 2575.21

Resistance

None

Support
The 20-Day EMA: 2542
2522 the upper channel line from the 9 March 2009 uptrend channel
The 50-Day EMA: 2510
2491 the Aug 2017 high
2480 a Aug 2017 high
2453 the Jun 2017 high
The 200-Day SMA: 2411

 

NAS Comp close: 6629.05

Resistance

None

Support
The 20-Day EMA: 6560
6477 the Sept 2017 high
6461 the Jul 2017 high
6450 a Sept 2017 high
The 50-Day EMA: 6447
6394 the Y 2016 trendline
6342 the Jun 2017 high
6300 a Jun 2017 high
6205 the May 2017 high
The 200-Day SMA: 6109

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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