Important Supports Worked

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 has an important support at DJ18,016, it has worked and the low before the bounce up was DJ17,995. The S&P equivalent is SP2,117, the index stopped down at SP2,119. The bounce up was at DJ18,351 that is the old all-time high and the old support that was broken in its way to DJ18,016. The S&P did the same movement to its breakdown at SP2,159. Both are inflection points and sleep over them will show bullish bias. If the supports at DJ17,995 and SP2,117 broke down, the bias will shift.
The downdraft of September is important and we have to consider the damage that it has inflicted in the charts. Only if the DJIA and S&P return over DJ18,351 and SP2,159, the damage in the charts will be erased.
The price action is technical and it should consolidate. The long term trend is still leaning-bullish.

Please click over the chart to enlarge it.

Fundamentals:
September is scary after the last four days movement. It confirms the statistic that September is the worst month of the year for the stocks.
Market is pending about the interest rates, some are expecting the increase of them next week after the FED meeting, other for December. We have seen that the bond yields have increased from last week. Please, reread my last weak blog where we can see the disappointed data of the U.S.A. economy, especially the ISM Services and Manufacturing. These negative data should reverse.
It seems that this volatility will stay until next FOMC next week.
Dear traders and investors, Presidential elections, interest rates hike and data is weighting in the market. My opinion is that the odds of the bull market should continue and be prepared to sail in rough seas.

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