Support DJ20,410 still in place

DJ Resistance:  21,169      All-time high
                           21,000
                           20,850      Gap closed
                           20,758
                           20,665      50 Days moving average
                           20,620      20 Days moving average
                         
DJ Support:      20,410      March low
                           20,125      January peak
                           20,000      Very strong
                           19,800
                           19,732
                           19,678      January low
                           19,290      200 Days moving average
                           19,200
                           18,800
                           18,668      Old all-time low
                           18,247      August high
                           18,000
                           17,833.23 November low (Trump rally)
                           17,579      Inflection poin
                           17,125      Very strong

Technical Analysis:
Big battle below 50 days moving average, DJ20,665 and SP2,353. Next important supports are DJ20,410 (March low) and DJ20,000. For S&P are SP2,322 and SP2,300.
We are witnessing an April downturn in the stock market but important supports as explained are working. There are damages, for example DJIA and S&P are below 50 days moving average, but indexes are contained over its supports. The consolidation phase is in the way and the market needs to breakout the negative trend line and close over it to. The negative trend line and the support line formed at DJ20,410 could be forming a bullish triangle. We will see!
DJIA and S&P are still bullish-leaning barring the violation of DJ20,000.

Please click over the chart to enlarge it.

Fundamentals:
Finally earnings season arrived, that could be the fuel to look for the all-time high. Until this moment the results are mixed to negative.
Last week was negative for the market and on Monday we got a bounce, DJIA lost 113.64 points on Tuesday. The interpretation of that could be that the bounce was a dead cat's bounce and the market will continue forming a lower leg or the supports are tested by the bears. DJIA and S&P are closing below its 50 days moving average during 4 consecutive days which is a sign of more downside in the short term.

Dear traders and investors, in my opinion the DJIA is in a consolidation phase as I have explained in my prior blogs where I have indicated that the all-time high is far away. The risk is a weak May if the corporate earnings are not as expected and if the geopolitical complications remain. The trend in the mid-term is to the upside and the short term could be bearish therefore the long and mid-term investors should stay long and buying into the dips.

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