18,054 2014 close high
DJ Support: 17,600 Strong
17,350 September high
17,278 September close high
16,990 Very strong
16,588 2013 peak
16,320
16,015
15,854 Very strong
Technical Analysis:
DJIA bounced back from one's month low DJ17,627. The support at DJ17,600 was very well defined and it worked correctly. Next target for the bulls is DJ18,054 which correspond to 2014 close high.
Tecnically, DJIA shows a clear positive trend to the new highs and it needs to attract more buyers to break the resistances. The index is well supported by the 50 and 200 days moving averages. The deeper floor in this uptrend is DJ16,990, below this level we could see a temporal reverse.
The picture shows probabilities to the upside if the index stays over DJ16,990.
The consolidation range is DJ16,990-18,289.
Please click over the chart to enlarge it.
Fundamentals:
The Federal Reserve’s latest policy statement is due out Wednesday. This statement is very important for the next fifteen days. As I have indicated the trend is clear to the upside but DJIA needs more fuel to stay over the new highs and fly in unknown territories. The U.S. dollar strength and the low rates support the stock market besides the good results of the U.S. corporations.
Dear traders and investors, the market is becoming obsessed with the U.S.dollar rate (FX) and the interest rates. What we have seeing in the last days is that stock market goes down if de U.S.Dollar appreciates. If dollar depreciastes,the stock market goes up. These are between a lot of important economic news that you have to consider to get your conclutions. The trend is up and constructive, I insist that the market needs more fuel to continue its up move.
Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!
Ulises
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