Bearish Backdrop

DJ Resistance:  18,351     All-time high
                           18,206     Breakout
                           18,104     2014 high
                           17,810     Important
                           17,579     Very important
                           17,050     Strong
                           16,640

 DJ Support:     15,850     Strong
                           15,370

Technical Analysis:
DJIA broke support at DJ16,460 approximately which is bearish and that indicates a possible shift to a bearish long-term direction. The S&P did the same with its support at SP1,970.
The 10 years monthly chart shows that the long term bull market is at its last and important support, please watch the chart.
The damage in the charts are considerably and is going to take time the repair of them.
September is beginning and volume is coming. The saucer pan formed on the toppish top is clear and the trend is bearish not only for the short term barring support at DJ15,850 works well and produces a bounce up. The resistance at DJ17,579 is the line to confirm the chart repairs are on the way.

Fundamentals:

I expect positive economic news from U.S.A. on productivity, manufacturing, service and employment.

This Friday would be the center of this week expectations with unemployment figures, non-farm payroll expected 213,000 new jobs by average economist. On Wednesday we will receive the ADP jobs, it should be positive, some speak about solid rock.

The last correction of the market was in 2012, S&P corrected 10% between April and June something like 32 days. We got calm during the last 3 years. The correction is healthy for the market prices and it will put out the loose hand investors.

Volatility, ups and downs, is going to be present in September. China puts nervous all the markets, affects and drives the stock exchanges markets.

Dear traders and investors, I am still positive with U.S.A. economy and stock market, European Union is doing better, the damage in the market needs repairs, September should begin with it. Then we have to expect volatility during this month. Please stay cool, stick to your plans, this correction is positive for the financial markets, I expect the rates rise for the end of the year, I told you at the end of 2014 that they were for September at least. If the support breaks down we can get a deeply shift of the market direction.

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