Commentary: Paul Ebeling on Wall Street, BvB’s, Support & Resistance

Commentary: Paul Ebeling on Wall Street, BvB’s, Support & Resistance


At the end of last week Wall Street stocks bounced off of the low range support mark showing us some Northside in the midst of pessimism and talk of an imminent selloff.

I agree with the overall assessment but as we all know it a matter of  when the roll over happens.

As is typical, when so many become so negative, the market tries to bounce. There are some good sectors and good patterns in sectors
that are still receiving money. The chips have come back around plus drugs and healthcare continue to set up. If new sectors get new money, the more the overall market can hold onto some gains.

With the DJIA at 17500.94, +0.38%, it could hold above support near 17350 for sometime before falling back to 17250 and lower. It may spend some time in the 17300-17750 range mid-term.

At the weekend looked at Northside plays because some sectors and individual stocks are getting money and good patterns are developing.

After this Northside bounce runs out of steam, then looking at the Southside action, as they will be set to resume their moves then. Until then we are going to look at some chips, energy, drugs and watch for what develops later this week.

Not sure how long the Northside will last in here, but as the sectors getting money show, even with the market struggling, they have worked out well.

The old Wall Street adage “Sell in May and go away” may have to wait a bit before the market is ready, but we still have a few May days to go.

Remember, the name of this Wall Street game is to make money.


The Bulls Vs The Bears

Sentiment Indicators

VIX: 15.2; -1.13
VXN: 16.4; -1.48
VXO: 15.26; -1.09

Put/Call Ratio (PCR) CBOE: 1.04; -0.33

High ratio readings can cause stocks to bounce, perhaps they are going to make a bounce after this last pullback.

The Bulls and The Bears moved back to where they were 3 weeks ago with The Bulls rising slightly and The Bears rising slightly. Not so high on the Bears to suggest a selloff, still pretty low on The Bulls.

The Bulls are at 40.2 Vs 39.2 last

The Bears are at 21.7 Vs 21.6 last


Support and Resistance

DJIA Close: 17,500.94

The 50-Day EMA: 17,572
17,748 an April 2015 low
17,715 the Jun 2015 low
17,786 the Mar 2015 low
17,978 the Nov 2015 high
18,181 the Jul 2015 high
18,288 a Mar 2015 high
18,351 May 2015 the all-time high

17,351 the Sept 2014 high.
17,265 a Dec 2015 low
17,245 the Nov 2015 low
17,152 the mid-Jul 2015 high
The 200-Day SMA: 17,117


S&P 500 closed: 2052.32

2062 a Jan 2015 high
2079 a Nov 2014 high
2094 the Dec 2014 high
2104 the Dec 2015 high
2116 the Nov 2015 high
2120 the Feb 2015 high
2126 the Apr 2015 high
2130 the Jun 2015 high
2135 the May 2015 all-time high
The 50-Day EMA: 2048
2046 the Jul 2015 low
2040 the Mar 2015 low
2023 the Nov 2015 low
2020 the Sept 2015 high
The 200-Day SMA: 2011


NAS Comp Close: 4769.56

4774 the Jan 2015 high
4811 the Nov 2014 high
4815 the Dec 2014 peak
The 200-Day SMA at 4816
The 50-Day SMA at 4821.

4751 a Jan 2015 high
4637 the Feb 2015 high
4736 a Jan 2016 low
4620 the Feb 2016 high
4615 the Aug 2015 low

Have a terrific week.

Paul Ebeling



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