18,206
18,103 2014 Peak
17,925
DJ Support: 17,715 Tuesday's low
17,615 200 Moving average
17,579 Very strong
16,990 Very strong
Technical Analysis:
DJIA did May low and touched support at DJ17,750. Resistance is at DJ17,925. June downturn gave a two months closing low. The bounce up is constructive for the bull case, my worries come from the support touched and buyers were not attracted, please watch the volume in the chart. The support is still valid at DJ17,715 (today's low).
DJIA maintains itself in the trading range DJ17,579-18,351 and now is testing supports. This support is very important, below it the market could get a correction because it would be confirmed as a "lower low". Supports DJ17,579 and DJ17,615 (200MA) should attract buyers and generate a bounce up. The selling pressure below record high is considered constructive after technical analysis. Technical analysis in its pure sense does not show a DJIA trend this year, I touch this point because the breakdown of DJ17,579 could be considered as an extension of time of the consolidation range (DJ16,990-18,351) by some analysts.
The bullish trend is still in play.
Watch today's "Doji"
Please, click over the chart to enlarge it.
Fundamentals:
Good economic news are seeing as the catalyzer for rate hike and strong dollar instead of a solid economy. Watch what happened last Friday with the unemployment, the market immediately sold stocks fiering higher rates and a king dollar.
I expect more positive economic news enough strong to push up the stocks but for the moment I suspect the stock market will stay in the range bound trading given the mixed interpretation of the news by the investors.
Dear traders and investors, these markets require patience and avoid to lose the control of the emotions. Remember, we trade and we have to have the emotions controlled. That is the only way to get rational decisions and to be in control all the time.
Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!
Ulises
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