DJ Support: 16,700 Light
16,620 Wednesday and Thursday lows
15,500 50DMA and positive trend line
16,312 Strong April low
16,174 November low
16,015 Very strong
Technical Analysis:
The DJIA and S&P have done new record highs without an expectacular breakout followed by a decisive follow through, let's say bulls disrupt bears.
Initial support comes at DJ16,700 approximately with a more important support at DJ16,620 Wednesday and Thursday lows.
The DJ last six months are positive and shows that the trend is up and constructive (please watch the positive trend line on the chart). The direction is firmly bullish.
The DJIA is also well supported by 20, 50, and 200 days moving averages.
We can conclude that the DJIA points to continue in the new territories with a slow speed. Markets needs more volume in its transactions.
Please click over the chart to enlarge it,
Fundamentals:
The market seems to be bullish monotonous. In the next three days the markets are going to be affected by some high-profile economic news: U.S. ADP Employment report, Beige Book, trade deficit, productivity, European Central Bank measures to combat possible low inflation and to stimulate the economy, Group of Seven meeting in Brussels, and finally unemployment rate with non-farm payroll. The boredom of the markets could disappear with them.
Dear traders and investors, I don't want to take away your time. The S&P and DJIA are in new territories but almost in the last months range. They need a larger action. They are going to have the catalyzers for an up or down move in these three next days. Personally, I am bullish but I cannot read the future. I have only expectations based in the rational analysis. Stay in your cockpits during these three days.
Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!
Ulises
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