18,206 Breakout
18,104 2014 peak
17,978 November 2015 peak
17,810
17,649 March 2016 peak
DJ Support: 17,579 Inflection point
17,400
17,128 200 Days moving average
17,125 Old strong resistance
16,933.43 September 2015 peak
16,667 Very strong inflection point
16,468
16,200 Light
15,980 Very strong
15,450 Strong
15,370.33 Very strong 2015 low
Technical Analysis:
March rally confirms the midterm trend is bullish. The long term is toppish and still bearish-leaning. The market has closed the first trimester with a strong downdraft and a nice bounce at the close. Basically the DJIA and S&P closed flat.
DJIA strong support are DJ17,128 (200 days moving average) and DJ17,125 (old strong resistance).
If DJIA goes through DJ17,649 (march 2015 peak) we could face a solid upward move that could change the long term trend. Please pay attention the negative trend line. The last behavior of DJIA and S&P are supporting by a clear bullish momentum.
Please click over the charts to enlarge them.
Fundamentals:
Japan and EU (European Union) are with negative interest rates and apply QE (quantitative easing) to stimulate the economy through bank lending. Eureka Yen and Euro became stronger, and in Japan the demand for high-denomination banknotes surprised the BOJ (Bank of Japan).
The Atlanta FED decreased its estimation for the first quarter GDP from 1.9% to 1.4%.
The market is confused with the rate rise by FED. If they rise it means that economy is well, if they don't means economy has weakness or there are risks.
We will face important economic news as unemployment rate and non-farm payroll this Friday, earnings season is coming in the next 10 days. All these information could help the bulls to try to break the negative trend line.
Dear traders and investors, the market is positive and bullish, big battle in the area DJ17,800.
Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!
Ulises
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