S&P New Record Closing

DJ Resistance:  19,999.63  New all-time high

                           19,987

                           19,972

                          

DJ Support:      19,678      January low

                           19,573      50 Days moving average

                           19,200      Strong

                           19,090     

                           18,800

                           18,668      Old all-time high

                           18,247      August low

                           18,000      Strong

                           17,833.23 November low

                           17,579      Inflection point

                           17,125      Very strong

Technical Analysis:

S&P closed in a new all-time high at SP2, 280. This is very positive for the bulls. The DJIA backdrop is weaker than S&P but after has done a new January low at DJ19, 678 last week bounced up and it is looking for the DJ20, 000. The last six weeks range is still valid.

NASDAQ COMPOSITE got a new all-time high at NAS5, 601.

The three indexes are bullish-leaning.

Please click over the chart to enlarge it.

Fundamentals: 

The new president is in charge and active. He began his presidency taking some actions that he promised during the election campaign.

The market is watching his decisions and actions and trying to identify if there would be a continuation of Trump rally.

4th. quarter GNP is expected over +2% and probably 2.8 this coming Friday. Market is in earnings season and surprises are more positive than negative. Election promises are to add growth prospects like less regulations, increase infrastructure spending and lower taxes. All those would generate higher earnings and possibly higher stock prices.

The market is expecting two or three interest rates hike this 2017. If strong growth sparks inflation would be negative for the market. The other risk is the new administration could confront the European Union, China, Mexico and Canada, if the market sees it as a trade war, it will sell the long positions to avoid risks and to lose money. 

Dear traders and investors, my opinion is to be bullish with these positive perspectives paying attention to a possible high inflation and trade war.

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

                  

Bull trend, DJ 20,000 resistance

DJ Resistance:  19,999.63  All-time high
                           19,887.38  December peak

DJ Support:      19,810
                           19,710      Strong
                           19,396      50Days moving average
                           19,200      Strong
                           19,090
                           18,800
                           18,668      Old all-time high
                           18,247      August low
                           18,000      Strong
                           17,833.23 November low
                           17,579      Inflection point
                           17,125      Very strong

Technical Analysis:
From the second December week to now DJIA has established a range which supports the bull trend. The range-bound is DJ19,710 to 19,999.63. DJ20,000 is capping the bull's efforts.
S&P support in the equivalent range is SP2,234 and SP2,248. S&P has almost the same behavior as the DJIA, it did a shy new high without follow through.
NASDAQ COMPOSITE is leading the uptrend doing new all-time highs constantly.
The backdrop is bullish-leaning after technical analysis.

Please click over the chart to enlarge it.

Fundamentals:
Last Friday earnings season of Q4 started up. Banks like BAC, WFC, and JPM gave positive results announcing a very possible interesting season. This year we are expecting two interest raises by the FED. The inflation is standing at 1.6% which does not menace the possible economic expansion that is a good new. Banks did very well during Trump rally but now it stopped and is waiting for clear signs.
World Bank announced that expects a 2.7% of global growth which is positive for the world especially for U.S.A. and European Community. It expects a stabilization and slightly higher prices for commodities. The downside risk is in the emerging markets if they slowdown its investments and political uncertainty, for example Brazil Lavajato crise. Trump protectionism is another risk for trade.
U.S. dollar is strong and could become stronger with the interest rates hike and EU is doing the contrary to U.S.A relating to political stimulus QE. Both could bring the U.S. dollar to parity with the Euro.
Dear traders and investors, the markets are waiting for the new elected President Mr. Trump's oath on January 20th. and the new congress. I think that we are no get big movement for the moment. The weight is on the upside now. The up or down of the market will be done by earnings season and the corporations optimism for this year, let's see!

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

Trend is clear bull leaning

DJ Resistance:  19,999.63      All-time high
                           19,887.38      December peak

DJ Support:      19,810
                           19,719      Strong
                           19,200      Strong
                           19,090
                           18,800
                           18,668      Old all-time high
                           18,247      August low
                           18,000      Strong
                           17,833.23 November low
                           17,579      Inflection point
                           17,125      Very strong
Technical Analysis:
S&P and NASDAQ COMPOSITE have gotten new historic highs, and DJIA has tried to break DJ20,000. December had an interesting volume.
The charts show a clear trend to the upside. NASDAQ COMPOSITE did a new all-time high fueled by Amazon, Google, Netflix and Facebook. It has confirmed its bull trend with several closing new all-time highs. S&P did a new all-time high but without really breaking out.
DJ20,000 is a target and represent a strong resistance, bulls have to fight to overcome it. DJIA has two months closing over its 20 days moving average. The strong support is between DJ19,712 - 19,750.
Technical analysis indicates a firm bull trend. 2017 has began very optimistic.

Please click over the charts to enlarge them.

Fundamentals:
The market is plenty of positive economic news. NFIB (National Federation of Independent Business), America small business association and small business optimism index, gave yesterday an impressive reading to 105.8 the best one from 2004. That means more investments, spending and job growth, the two thirds of GDP in U.S.A. is make up by the consumer. We can expect then higher economic growth, earnings growth and share prices.
The market is waiting for the new president of U.S.A.
Dear traders and investors, 2017 promises to be a very interesting year, it seems very positive for the stock market and I am glad to be back with you.  Excuse me because it seems that there are problems with the blog server.

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