Dow Jones approaches to 25,000

DJ Resistance:  24,876.07  All-time high

DJ Support:      24,715.60
                           24,500
                           24,200       20 Days moving average
                           24,100
                           23,950
                           23,622       50 Days moving average
                           23,600
                           23,500       Gap upperside
                           23,480       Gap downside
                           23,250       Strong
                           23,174       Gap
                           23,002       Strong, gap
                           22,890
                           22,795
                           22,420       Strong, breakout
                           22,119
                           22,000
                           21,974       200 Days moving average
                           21,912
                           21,600
                           21,535       July peak
                           21,115
                           20,800
                           20,590
                           20,400       Strong
                           21,125       January peak
                           20,732
                           20,672       January low

Technical Analysis:
DJIA is targeting DJ25,000, S&P to SP2,700 and Nasdaq Composite to 7,000. The three indexes are in uncharted territory which makes difficult to project the upside move. They have reached new all-time highs.
DJIA first support is the breakout point DJ24,500. The equivalent in the S&P is the support at the breakout point at SP2,665.
The three indexes are over its 20, 50 and 200 days moving average which are strong supports and it means very bullish.
The trend is bullish and there is a rotation to the wealth sectors of the market.

Please click over the chart to enlarge it.

 Fundamentals:
The economy is actually doing well and therefore the corporations. The consumption in the U.S.A. is solid.
Construction and Business Equipment in good shape according to Industrial Production figures which were +0.2%.
Up to 2.1% the Atlanta FED Business Inflation Expectations which is positive.
The Empire State Manufacturing at 18.0
Housing Market index jumped to 74 from 70.
Redbook reported, retail sales, growth rate at 4.4%, year to year, versus the previous month gains at 3.3% also year to year.
Last Housing Starts were at 1.297.000 units (annualized) better than the previous 1.256.000.
Today the market should get the confirmation by the Congress, both House of Representatives and Senate, of the Trump Tax cut bill, it would be very positive.
This Friday is the final delay to avoid the Government shutdown, I expect both parties will get an agreement.

Dear Traders and investors, let me say that 2017 was avery  positive year, DJIA increased in 5,000 points and there is room for a small Christmas Rally.

I would wish you an excellent time with your families and all the happiness that we deserve as traders, investors and colleagues, our life, fight and profession is very hard.

Merry Christmas!
Happy Hollidays!


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

Bullish continues the trend

DJ Resistance:  24,552.97  All-time high
                           24,534.04  Old all-time high

DJ Support:      24,335
                           24,320       20 Days moving average
                           24,100
                           23,950
                           23,600     
                           23,500       Gap
                           23,480       Gap
                           23,470       50 Days moving average
                           23,250       Strong
                           23,174       Gap
                           23,002       Strong, gap
                           22,890
                           22,795
                           22,420       Strong, breakout
                           22,119
                           22,000
                           21,912
                           21,890       200 Days moving average
                           21,600       Strong
                           21,535       July peak
                           21,200
                           21,115
                           20,800
                           20,590
                           20,400       Strong
                           21,125       January peak
                           20,732
                           20,672       January low

Technical Analysis:
The three indexes or the major benchmarks maintain a bull trend and in the last days their daily closes are showing record after record.
The November breakouts were impressed because they were done two months after a breakout and a solid consolidation. With the November breakout the panorama became similar in December.
Near term support is DJ24,100 and strong at DJ23,950.
DJIA and S&P are closing over the 20,050 and 200 days moving averages which is technically powerful for the bulls.
The three indexes are running in uncharted territories that could give extremely volatility. We recognize that the market is very supported and the bull trend is clearly barring support at DJ23,002.
The consecutive record closes that we are witnessing in the last days are technically very constructive for the bulls.
The Nasdaq Composite is lagging behind.



Please click over the chart to enlarge it.

Fundamentals: 
Non-farm payroll last Friday showed the creation of 228,000 new jobs, market was expecting 190,000. The details in this great number is very important to understand the State of the economy. Private payrolls were up 221,000 and public payroll were up 7,000. In this context Professional & Business Services managed 46,000 new jobs, Construction gained 23,000, Manufacturing advanced 31,000 and Health Care boosted 30,000. The unemployment rate lingered at 4.1% which is 17-year low. It was an excellent employment report that triggered a market rally at the end of the week.
Yanet Yellen will drive the FED today in her end as President, it will be very important her speech about interest rates after her last FOMC meeting. I expect an increase of .25% due the solid economy, corpations activity and demand.
The terror attack in New York was controlled inmediately. New york is a resilient city and the markets reacted with calm.

Dear traders and inventories, there are three weeks more of trading before of the year's end and based in the economy, corporations and the demand of consumers I still expect even more gains, possibly a Christmas rally.

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

Trend is firm bullish

DJ Resistance:  24,534.04  All-time high
                         
DJ Support:      23,950
                           23,690       20 Days moving average
                           23,600
                           23,500       Gap
                           23,480       Gap
                           23,285       50 Days moving average
                           23,250       Strong
                           23,174       Gap
                           23,002       Strong, gap
                           22,890
                           22,795
                           22,420       Strong, breakout
                           22,119
                           22,000
                           21,912
                           21,774       200 Days moving average
                           21,600       Strong
                           21,535       July peak
                           21,200
                           21,115
                           20,800
                           20,590
                           20,400       Strong
                           20,125       January peak
                           19,732
                           19,672       January low

Technical Analysis:
In the short term it is necessary a consolidation phase because is overbought. In the long run the trend is firmly bullish.
DJIA last target at DJ23,950 has been achieved and has done a new record high at DJ24,534.04.
Supports for the short term are not easy to identify because the index is in uncharted territory, DJ23,600 should act as a strong support.
DJIA and S&P are over its 20 days moving average which is positive and bullish.
S&P support is in the area of SP2,600.

Please click over the charts to enlarge them>

Fundamentals:
The market pulled down in the last three days but it got a new record high on Monday. It is healthy to consolidate and rest.
The recent economic news were a little disappointed but not negative for the economy:
PMI Services Index at 54.5 from last month 55.3
ISM Non-Manufacturing Index at 57.4 from last month 60.1
Redbook 3% year to year rate of change, last month it was 4.8%.
This Friday we will get the unemployment rate and non-farm payroll and the spending bill to avoid the shutdown of the government. These will put traders cautious and in the geopolitics the chatters of President Trump will recognize Jerusalem as the Israel capital and the move of the U.S.Embassy to the city.

Dear traders and investors, I find healthy the market pull back and a possible consolidation phase, we are in uncharted territory. The economy and the corporations with a solid consumption are doing well. I still expect a Christmas rally for the end of the year.

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