20,000
19,987
DJ Support: 19,732
19,678 January closing low
19,662 5 Days moving average
19,200 Strong
19,090
18,800
18,668 Old all-time low
18,247 August low
18,000 Strong
17,833.23 November low
17,579 Inflection point
17,125 Strong
Technical Analysis:
The three indexes closed January in a defensive mood after have done new record all-time high. S&P closed over its support SP2,277 with a January peak at SP2,300.99. DJIA is weaker and is under DJ20,000, a violation of DJ19,662 (50 days moving average) will put the index in neutral territory with high possibilities for a correction.
Although the defensive January close the three indexes are showing an uptrend bias especially S&P and NASDAQ COMPOSITE.
Please click over the charts to enlarge them>
Fundamentals:
New administration is in charge and putting in service its election promises. For the moment there is uncertainty in the markets and that is terrible for them. More uncertainty more sale of stocks.
Last week we got the GDP for the 4th. Quarter, the market was expecting something over +2% until +2.9% and we got +1.9%. Let's say below expectations but it is a good number for the economy. It is true that for the 3rd. Quarter we got +3.5% but before it was +1.4, +0.8, +0.9. Then 4th. Quarter figure showed improvement in the economy and better consumption promises.
This week we will have important indications about the U.S. economy like FOMC Meeting announcement, ISM Manufacturing, ISMA Services, ADP employment, Construction spending, Productivity, and unemployment with non-farm payroll on this coming Friday. All of them should add fuel to the economy.
Dear traders and investors, I remain bullish and I think the retracements should be taken as an excellent opportunities to buy stocks and increase the positions.
Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!
thank you
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