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miércoles, 25 de septiembre de 2013

Pullback?

DJ resistance :   15.709.58  historical high
                         15.475
                         15.302  50day MA (moving average)

DJ support  :     15.050
                         14.800
                         14.550
                         14.400 Strong
                         14.400 Strong very important

Technical analysis : 
The DJ index got its historical highest level last week 15.709.58 and closing at 15.676.94 on September 18th. The DJ index needs a weekly closing over those levels to reconfirm the positive trend.
The market trend still points higher. The monthly chart from 1988 shows positive besides the positive trend line and channel on the daily chart from March 2009.
But there is a risk, if you watch the daily chart in the last six months, you are going to realise that the DJ could be forming a triple top that is very negative or  a clear range between 14.400 and 15.709.58.

Fundamentals  :
The DJ is losing streaks in the last five days because the possible goverment shutdown overriding the better than expected economic news.
Besides, the debt ceiling theme is for October. The QE worries are translated to October 29th. in the next FOMC. The market perceive the Syria fears softer.
It is clear that some of the key factors of the almost five years bull market have been the high liquidity level from QE, the corporate  rationalisation and reestructuration, they are more efficient and solid.
We have to pay attention on Thursday to weekly jobless claims, consumer spending, PCE price index, and on Friday to personal income, University of Michigan consumer sentiment index.

We conclude the DJ is in a positive trend, I am still optimistic  with the stock matket, we are facing risks but life is a risk.
I am trying to include charts to show you the support of our conclusion and you could use them to navigate in these hectic market.
Dear traders and investors my goal is to assist you in our  solitude  property in decision-making in our profession,
Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!
Ulises

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