Bullish in consolidation range

DJ Resistance:  18,351      All-time high
                           18,206      Breakout
                           18,104      2014 peak
                           17,978      November 2015 peak
                           17,810

DJ Support:     17,579      Inflection point
                          17,400      Strong
                          17,125      Old strong resistance
                          17,123      200 days moving average
                          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:
DJIA continued fighting against resistance DJ17,810 but sellers without strong conviction were attracted near this level. Support is at DJ17,400. This is the consolidation range. For S&P the range is SP2,020-2,080.
DJIA and S&P have respected their negative trend lines lastly as support.
The price action is technical in the last five or six weeks and constructive to the upside.

Please click over the chart to enlarge it.

Fundamentals:
IMF reduced its forecast for global growth to 3.2% for 2016 from 3.4%, China still weak GNP between 6 to 7% and EU growing but a slow speed. What could move the market is the earnings season.
As I have indicated in the prior weeks the long term market is bearish, please watch the negative trend line in the chart, and the midterm is leaning-bullish. Please pay attention to de resistance DJ17,810.
DJIA and S&P went up on Tuesday because the oil price raised. The relacion stock prices with oil is clear because the oil increses its price when the economy is growing and higher demand is expected consecuently the stocks goes with oil. But in these moments this relation does not need to be because the oil reserves are plenty and expectations are for more cheap energy.
As the market is toppish from last year and the general trend is to the downside I enlist the arguments for a possible bear market:
- Bull market age.
- Toppish patterns, please watch the chart and the last week chart were you can see the head and shoulders formation and its reverse to the upside.
- Economic news are weaker every months.
- Corporate earnings are lower in the last three trimester.
- Stocks are full valued and bulls would like to buy them at a better price.

Dear traders and investors, I expect DJIA and S&P will remain in its consolidation ranges and I suggest you to avoid trades while the indexes stay in the ranges. The long and short positions should be taken if the indexes break the supports or resistances.

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