The Trend is Still Bullish

DJ Resistance:  22,179.11  New all-time high
                           22,000

DJ Support:      21,840       Strong & 20 days moving average
                           21,682       July peak
                           21,590       50 Days moving average
                           21,535       June peak
                           21,305
                           21,200
                           21,115       Strong breakout
                           20,980
                           20,800
                           20,590
                           20,530       200 Days moving average
                           20,400       Very strong
                           20,125       January peak
                           19,732
                           19,678       January low

Technical Analysis:
DJ21,840 has proven to be an excellent support and the bounce from this level is constructive for the bulls. We can define a consolidation range DJ21,840 - 22,179.11.
S&P has a strong support at SP,2440 and technically is SP2,449-2,553.
The three indexes have a bullish trend although the downturn in August. DJIA is the strongest index between the three.

Please click over the chart to enlarge it.

                         
Fundamentals:
Geopolitical risks relaxed this week, U.S.A. versus North Korea, and the stock market recovered part of last week losses. Investors have to focus in the long term trends and not on geopolitical rhetoric, we have to pay attention to it but the focus in the long term trend.
When the economy, interest rates and corporate earnings growth, the bull market will extend its existence until the stock prices get overvalued. Right now we are still in a bull market without overvalue in the stock market then please do not short , stay focus in the long term trends and be long, you can buy the deeps (dips) or maintain the course on your long term portfolio strategy on the long side. Economic evidence is for the long side. We have to be long until the stock market prices become overvalued and out of control. At that time we will sale and possibly short as the money managers do.
August and part of September are difficult months for trading, this is the summer doldrums.

Dear traders and investors, the target SP2,500 is on the way and I suggest you to consider that at this point in this aged bull market the breakouts are not followed by an explosion instead by profits taken.



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