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martes, 9 de septiembre de 2014

Reconfirmation of the breaks in August?

DJ Resistance:  17,161.55 All-time record high
                           17,138      All-time record closing high

DJ Support:      17,010     Light
                           16,980     Strong ( breakout)
                           16,743     Very Strong May peak
                           16,588     Strong 2013 peak
                           16,355     Strong
                           16,015     Very strong
Technical Analysis:
DJIA is fighting with its resistance at the all-time record high. This level is the battle field for bulls and bears. DJ is lagging S&P and NASDAQ Composite. Both of them need the DJIA to overcome its resistance to get green light for new record highs.  Other way DJIA could weigh the market to the down side and avoid this opportunity to trip in the new record territories. That is the reason I told you that the market needs in September to reconfirm the August break outs.
DJIA is still in the bullish range consolidation DJ16,980 (breakout watch daily chart) - 17,161.55 (all-time record high).
20, 50 and 200 days moving averages are pointing up and supports the blue-chip benchmark.
S&P bullish range consolidation over its breakout is SP1,990 - 2,011 (all-time record high).
Despite the supports testing, the market trend is to the upside.
Please click over the charts to enlarge them.


Fundamentals:
The U.S. economy is actually recovering, maybe markets need more speed. The problem in U.S.A. and E.U. is the unemployment, they need jobs with good quality. More jobs well paid will growth the consumption then the activity is going to increase, the corporations are going to be healthier and the government is going to cash more taxes.
We are facing important economic news, Last Friday non-farm payroll was disappointed but in general, news are positive for the economy. China sent a good one this week with its exports new record high.
In my opinion, rates are going to stay low for a year at least. The FED knows it, and they are not going to kill the recovery. In general terms the inflation is controlled. I am not supporting my fundamentals view because I think September has to confirm what we got in August to aspire the continuation of the bull market.
Dear traders and investors, my concerns is about the confirmation the August break outs to be sure that the bulls can fight in the market resistances attracting buyers in those levels.

Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!

Ulises

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