18,054 All-time close high
DJ Support: 17,820 50 Days Moving Averages
17,600 Strong
17,350 September high
17,278 September close high
16,990 Very strong
15,854 Very strong
Technical Analysis:
It is not easy to navigate in uncharted territories. The chart formations are clear the bull market is still in place.
The market is in its consolidation range, it last from the last 5 months and it is constructive. Every time it is doing new record highs but it reverses from the uncharted territories. We could think that every 100 new points in the DJIA reverses 400 or 500 points. That means that the market knows the trend is to the upside and the buyers do not continue buying through unknown lands because they fear a reverse. They need a conviction to take risks.
The strong support in the short term is in the 50 days moving average and DJ17,600.
I consider the market is firmly bullish over DJ16,990 in the long term and over DJ17,600 in the short term.
Please click over the chart to enlarge it.
Fundamentals:
U.S. economy, interest rates and EU economic recovery make me optimistic with the stock market for 2015. Positive economic news are coming from U.S.A. and European Union (EU). I expect good corporation results in the coming earnings season in April. The quarterly earnings of the corporations could be the catalyzer to bring the stock market to new territories, stay and fly there.
It is clear that the market is asking for a 10% correction to put the stock prices in balance after the last up leg (beginning October 2015). I don't think that we are in time for a strong correction due the 3 facts that I have mentioned in the first line.
Dear traders and investors, financial markets are complicated and hard, my recommendation is to be long and buy on dips. The bull market is still in place, but nothing is written, the markets are dynamics and we have to be prepared to tackle any situation.
Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!
Ulises
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