Commentary: Paul Ebeling on Wall Street, Bulls Vs Bears, Support & Resistance

Commentary: Paul Ebeling on Wall Street, Bulls Vs Bears, Support & Resistance


The near term stock market picture is more indices starting to show wear, tear and threatening a break lower similar to NAS & SOX. DJJIA
and RUTX started to crack their 50-Day MA’s just as SOX and NAS did earlier.

The near term patterns on S&P 500, DJIA, RUTX, and S&P 400 are weaker, they have not broken their trends. Some market sectors are still attracting Wall Street money rolling from other areas, but more Wall Street money is going to the sidelines, aka dry powder

The Big Q: When does this Northside move run out of stema.

Friday may have signaled us, but both breadth & volume were low and this is something seen in this market recently, weak Friday then a recovery.

Savvy participants are playing the Northside in he sectors getting the money flow; energy, materials, builders and the financials for now.
And at the same time opening more Southside plays as they develop, and anticipating shifting to even more money to the Southside as the Northside move runs out of steam.

Remember, be alert, the name of this Wall Street game is to make money, that means always have dry powder.


The Bulls Vs The Bears

Sentiment Indicators

VIX: 15.04; +0.63
VXN: 17.1; -0.16
VXO: 15.82; +0.86

Put/Call Ratio (PCR) CBOE: 1.15; -0.13

Note: the Bulls faded after an impressive string of Northside moves, that suggests an overbought stock market.

The Bulls are at: 39.2 Vs 40.2 last

The Bears are at: 21.6 Vs 21.7 last


Support and Resistance

DJIA close: 17,535.32


The 50-Day EMA: 17,580
17,748 a mid-Apr 2015 low
17,715 the Jun 2015 low
17, 786 the Mar 2015 low
17,978 the Nov 2015 high


17,351 the Sept 2014 high.
17,265 a Dec 2015 low
17,245 the Nov 2015 low
17,152 a mid-Jul 2015 high
The 200-Day SMA: 17,119


S&P 500 close: 2046.61


The 50-Day EMA: 2048
2062 a Jan 2015 high
2079 the Nov 2014
2094 the Dec 2014 high
2104 the Dec 2015 high
2116 the Nov 2015 high


2046 the Jul 2015 low
2040 the Mar 2015 low
2023 the Nov 2015 low
2020 the Sept 2015 high
The 200-Day SMA: 2012


NAS Comp close: 4717.68


4751 a Jan 2015 high
4774 the Jan 2015 high
The 50-Day SMA: 4815
4811 the Nov 2014 high
4815 the Dec 2014 high
4825 the Mar 2015 lows
The 200-Day SMA: 4826


4637 the Feb 2016 high
4736 a Jan 2016 low
4620 a Feb 2016 high
4615 a late Aug 2015 low
4506 the Aug 2015 low
4485 the Jul 2014 high
4471 the Jan 2016 low

Have a great week.

Paul Ebeling

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