Commentary: Paul Ebeling On Wall Street
With all of the recent volatility the S&P 500 is at 1948.
The DJIA went through 16,500 looking for 16,800.
The Russell is back to the prior recovery high and 50-Day EMA.
The NAS Comp is at the 50-Day EMA, the recovery high.
Russell 2000 -8.4% YTD
NAS Comp -8.3% YTD
S&P 500 -4.7% YTD
DJIA -4.5% YTD
The S&P 500 and NAS Comp are at critical marks.
The Big Q: will they lead or will they drag?
The move is a low to average volume recovery one. The small and mid-caps are showing some strength, trying to turn and rally.
Then there is the Fed… With Fed backing, a low trade move can hold for a while at least on a bounce.
I do not like this move. It is speculative and based on central bank stimulus in a negative atmosphere.
DJIA finished at 16639.97, or -0.34%, the Key index is facing a minor resistance at 16800, as long as the support of 16450 holds, it can keep moving toward 17000 this week. The short term uptrend weaken below 16300 according to my work.
Will want to see how this move plays out.
Given the overall market top anticipate more to the Southside while we acknowledge and play upside counter-trend moves as they happen.
The overall the negative pattern is in place, but not ignoring the strength in here, to be sure the Wall Street sellers will be back.
Remember, the name of this Wall Street game is to make money, so take what the market gives.
Have a terrific week.