Still Bullish Bias

DJ Resistance:  18,351      All-time high
                           18,206      Breakout
                           18,104      2014 high
                           17,980      November 2015 peak
                           17,800


DJ Support:      17,579      Important inflection point
                           17,332
                           17,125      Very Strong
                           16,933.43 Strong September 2015 high
                           16,667      Inflection point
                           16,520
                           16,200      Light
                           15,980      Very strong
                           15,450      Strong
                           15,371.33 Very strong 2015 low

Technical Analysis:
DJIA and S&P stayed in the range-bound despite the fact that both made a new 2 months low, DJ17,332. The reverse confirms the importance of those supports. Next resistances are at DJ17,800 and 17,980.
Last week May low  DJ17,332 is at the trend line support (old negative trend line). The DJIA just closed below the 50 days moving average.
The three indexes are in a range-bound during May and technically indicate a bullish bias.
What is the direction of the market? Technically is to the upside but the range-bound should breakout and it could take the South way.


Please click over the chart to enlarge it.

Fundamentals:
There are not important economic news this week to try to break the range-bounds. Some specialists consider that the last up move is quite meaningful.
I was looking at the retail sales. 70% of the U.S.A. PBI is done by the consumers. The retail stores are giving some harsh announcements like Wall-Mart to close 269 stores, K-Mart 20 stores, JC-Penny 47, Aeropostale 84. That does not mean that the consumption is weakening, that means that there are adjustments and changements in the market. While department-store sales fell 1.7% in the last year, the online and catalog sales grew 10.2% in the last twelve months. Amazon reported Q1 earnings U.S.$1.07 and the market was expecting U.S.$0.67 per share. The consumption is strong and solid.
New home-sales crushed the market with 619,000 annual sales pace in April. It was the biggest monthly jump in 24 years, the market was expecting an annual pace of 525,000.
What I am trying to tell you is that economics are more in favor of the bulls right now.
Dear traders and investors, I still think that we need to be patients and wait for the breakout to jump in the bandwagon.

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