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

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


The bulk of earnings are finished, The Walt Disney Company (NYSE:DIS) is the only DJIA component that reports this week.

It is May, and the time when may Wall Street traders are getting ready to head for vacations, lot of managed money is already sidelined, its in the T’s not B’s.

Many participants may still be of the mind to believe the US Fed still stands behind the market and will overcome weak economic data to keep financial assets propped up.

The major US stock indices are off the prior highs, and look to be trying to set up another Northside move.

The NAS Comp big names are showing short double bottoms, indicating some managed money moving their direction. Perhaps it is just a short bottom attempt that runs out of money, but the patterns are there.

The Disney pattern looks good on the results of its latest tentpole film, some materials, some energy also look Ok to good, have to wait and see what happens as this market is in a major topping high pattern.

Of course play a bounce, and if the indices keep moving higher then play them too.

Last week the DJIA finished at 17740.63, +0.45%, and overcame the Wall Street selling pressure to close in the Green, signaling a probable rise to 18000 in coming sessions.

As I write this report at 3:45a EST, the DJIA June mini’s are trading +21.00 at 17,692.

Remember, always take what the market gives, and the name of the Wall Street game is to make money.


The Bulls Vs The Bears

Sentiment Indicators

  1. VIX: 14.72; -1.19
  2. VXN: 17.54; -1.6
  3. VXO: 15.26; -1.32
  4. Put/Call Ratio (PCR) CBOE : 1.19; -0.01, 8 straight at 1.0 or better as the indices hit a high and then started
    to fade. 18 of the last 32 above 1.0. More than enough 1.0+ readings to support a move back up.

Bulls and Bears: Another week of Southside took some breath out of the Bulls, fueled the Bears a bit. Still diverging after crossing back.

The Bulls are at 40.2 Vs 44.3 last

The Bears are at 21.7 Vs 20.6 last


Support and Resistance

DJIA close: 17,740.63


17,748 an Apr 2015 low
17,715 a Jun 2015 low
17,786 the Mar low
17,978 the Nov 2015 high
18,180 the Jul 2015 high
18,288 from Mar 2015
18,351 the May 2015 all time high


The 50-Day EMA: 17,549
17,351 the Sept 2014 high.
17,265 a Dec 2015 low
17,245 the Nov 2015 low
17,152 a Jul 2015 high
The 200-Day SMA: 17,116


S&P 500 close: 2057.14


2062 a Jan 2015 high
2079 the Nov 2014 high
2094 the Dec 2014 high
2104 the Dec 2015 high
2116 the Nov 2015 high
2120 the Feb 2015 high
2126 an Apr 2015 high
2130 the Jun 2015 high
2135 the May 2015 all-time high


2046 the Jul 2015 low
The 50-Day EMA: 2044
2040 the Mar 2015 low
2023 the Nov 2015 low
2020 the Sept 2015 high
The 200-Day SMA: 2013


NAS Comp closed: 4736.16


4751 a Jan 2015 high
4774 the Jan 2015 high
The 50-Day EMA: 4799
4811 the Nov 2014 high
4815 the Dec 2014 high
4825 the Mar 2015 low
The 200-Day SMA: 4835


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

Have a great weekend.

Paul Ebeling

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