Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

$DIA, $SPY, $QQQ, $VXX

Again, hitting my targets, but no predictions yet.

Friday’s finish: DJIA +220.74 at 25295.87, NAS Comp  +58.64 at 7136.56, S&P 500 +19.16 at 2743.15

  • NAS Comp: +3.4% YTD
  • S&P 500: +2.6% YTD
  • DJIA: +2.3% YTD
  • Russell 2000: +1.6% YTD

The Big Q: Will the managed money keep coming in?

The Big A: It came in heavy into large caps last week:

Note: It is January and typically the smaller issues get the money, and remember ‘so goes January, so goes the year.’

So, even if managed money slows its flow to the large caps, it seems reasonable that it may seek out the small and mid-caps, the traditional January targets.

Meaning, if the large cap money slows, the market can still rise thanks to the managed money bids moving to lesser issues.

We wait to see.

Last week the retail bid were weaker after strong end of year runs, but energy and big tech,
manufacturing, and the FANNGs are strong.

What’s next, China, drugs, the Internet?

Remember, the trend is our friend, so playing the trend is the rule, and focus on the leadership.

Plus, look for and picking up good stocks with good patterns not extended,as we take what The Trump Bull market bounty continues.

Pay attention, there will be dips, pullback and hopefully a healthy correction, it is your money and so your responsibility.

The Bulls Vs The Bears

Sentiment Indicators

VIX: 9.22; 0.00
VXN: 13.48; -0.49
VXO: 8.56; +0.24

Put/Call Ratio (PRC) CBOE: 0.92; +0.10

The Bulls Vs The Bears

Note: We are seeing the Key indicators moving back and forth in a narrow range within what is an extreme level for Bulls.

The Bulls are at 61.9 Vs 64.1 last

The Bears are at 15.2 Vs 15.1 last

 

Support and Resistance

DJIA close: 25,295.87

Resistance

None

Support
24,835 the mid-Dec high
The 20-Day EMA: 24,688
24,312 the trend line
The 50-Day EMA: 24,118
23,608 the Nov 2017 high
22,420 the Sept 2017 high
The 200-Day SMA: 22,194

 

S&P 500 close: 2743.15

Resistance

None

Support
The 20-Day EMA: 2682
2694 the Dec 2017 high
The 50-Day EMA: 2637
2597 the Nov 2017 high
2549 the upper channel line from the 9 March 2009 uptrend channel
2491 the Aug 2017 high
The 200-Day SMA: 2490

 

NAS Comp close: 1736.56

Resistance

None

Support
7,000 a Dec 2017 high
6914 the Nov 2017 high
The 50-Day EMA: 6842
6796 the Nov 2017 high
6660 the Y 2016 trendline
6641 the Oct 2017 high
6477 the Sept 2017 high
6461 the Jul 2017 high
6450 the Sept 2017 high
The 200-Day SMA: 6394

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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