DJIA in a Range

DJ Resistance:  18,668      All-time high

                           18,470

                           18,351      Old all-time high

                           18,247      August low

                           18,171      April peak

DJ Support:      17,995     Prior 18,016 strong support

                           17,700

                           17,579      August 2015 Inflection point

                           17,433

                           17,125      Very strong

                           16,933.43 Strong September 2015 high

                           16,667      Inflection point

                           16,520   

                           15,980      Very strong

                           15,450       Strong

                           15,370.33 Very strong 2015 low

Technical Analysis:

DJIA and S&P have maintained themselves over their major supports DJ18,016 to 17,995 (June peak) and SP2,119 while NASDAQ COMPOSITE has almost reached its all-time high and remains the strongest.

DJIA first resistance is at DJ18,247 (August low) and the next and important is DJ18, 351 (old all-time high and breakdown point). S&P has support at SP2,119 and strong resistance at SP2,160 (breakdown point).

DJIA and S&P have formed a holding pattern waiting for FED meeting and policy directives of bank of Japan this week. The trend is still to the upside and well supported at DJ18,000 area.

Please click over the chart to enlarge it.

Fundamentals:

Hard times, market waits for the FED decision about rates hike and the policy directives from the bank of Japan this week.

Good news we got on Friday, household net worth climbed over 89 trillion U.S. dollars in second quarter. We can explain those gains from stocks and real state rise. That explains why buyer are coming on the dips.

If there is not rate hike, would be a stock rally? Very difficult in my opinion. But it is hard to foresee the future. I think if support at DJ17,995 doesn't work, we will see a retracement to DJ17,579, S&P to SP2,100 and maybe Sp2,050 approximately 200 days moving average.

Dear traders and investors, I still see a leaning-bullish for the long term but in the short we could face a retracement that would be very healthy to rebuild the positions at a good prices. I recommend not to buy until we see the FED decision and we get the policy directives from the Bank of Japan. We could face three or four weeks very moved.

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