Commentary: Paul Ebeling On Wall Street
$DIA, $SPY, $QQQ
The relief rally is at its 1st test, look to me like buyers are exhausted at this Resistance mark, the sentiments are at extremes, internals weak. Stocks now have to to consolidate the wild action of last week, read: test the lows and put in higher highs.
The Big Q: Where does it start?
The Big A: Last Friday into the close.
There are not many Northside patterns in the leadership. Will be looking for double bottoms in the Tier 1 issues, perhaps some inverted head and shoulders patterns too.
Until that happens the patterns are set up to the Southside, and showing Bear flags. That indicates the market has a test coming early and into Friday ahead of the long Labor Day weekend. Not to mention that many Wall Street traders are on vacation into 8 September.
Again, the plays this week are to the Southside plays, so be ready for a selloff off of last week’s relief rally, if that is what it was. Some are calling it a “dead cat” bounce, if so the low will likely be much lower.
As I write this the futures are sharply lower:
DJIA Sep 15 16,507.00 -152.00 16,635.00 16,635.00 16,425.00 01:56:59
S&P 500 Sep 15 1,971.75 -18.00 1,986.25 1,987.75 1,959.25 01:57:02
NAS 100 Sep 15 4,310.25 -22.75 4,324.00 4,330.25 4,270.25 01:56:47
Remember, the name of this Wall Street game is to make money. So be prudent, there will always be another trade.
Have a terrific week.
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