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miércoles, 7 de septiembre de 2016

S&P and Dow Jones Hold in the Range

DJ Resistance:  18,668      All-time high
                         
DJ Support:      18,470
                           18,355      50 Days moving average
                           18,351      Old all-time high
                           18,247     August low
                           18,171     April peak
                           18,016     Strong breakout
                           17,700
                           17,569      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: 
S&P and DJIA stay in the range formed from July. We can say that these ranges were boring during August, the indexes stayed near the upper side during the month which supports the bull bias barring a breakout of the technical supports, DJ18,470, DJ18,355 (50 days moving average), DJ18,351 (old all-time high), DJ18,247 (August low) and the strong support at DJ18,016.
As DJIA is stayed near the new all-time high trying to do new highs we can conclude the bullish trend in the short and long term are in play and provided supports remain unbowed.

Please click over the chart to enlarge it.



Fundamentals:
We got last week the non-farm payroll which was lower than expected. The unemployment stayed same as prior month.
ISM Service-sector gauge falls to its lowest level since February 2010. Companies of health care, retail goods and financial advice grew in August at a worrisome level. The Institute for Supply Management said its non-manufactured index fell to 51.4% from 55.5% in July. It is still positive because it is over 50%. The vast majority of Americans are employed in the service oriented businesses that account for much of the U.S. growth.
The ISM new-orders index decreased to 51.4% from 60.3%, it is the lowest level since December 2013.
ISM Manufacturing came last Thursday lower than expected at 49.4%.
These negative indexes could be temporally week, hopefully, after the creators of them. We have to follow and see what is going to happen with them in the future.
Volume is coming back slowly to the market that will confirm or negate the prices level of the stocks.
These bad news are good for the stock market because the economy is growing slow but with no fear of recession and all that means low interest rates.

Dear traders and investors, these last economic news will not allow the FED to increase the interest rates in September, I expect it for December after a confirmation of the recovery of the bad figures.

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














1 comentario:

  1. Equity benchmarks recovered in late trade as the Sensex gained 18.69 points at 28372.23 and the Nifty up 11 points at 8726.60.
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