Nice spike

DJ Resistance:  26,616.71  All-time high
                           26,000
                           25,800.35
                           25,500

DJ Support:      25,400
                           25,245       50 Days moving average
                           25,080       20 Days moving average
                           24,876       2017 peak
                           24,719       2017 close
                           24,715.19  Support of old range
                           24,500
                           24,100
                           23,950
                           23,600
                           23,500       Gap upside
                           23,480       Gap downside
                           23,250       Strong
                           23,174
                           23,002       Strong, gap
                           23,001       200 Days moving average
                           22,890
                           22,795
                           22,420       Strong, breakout
                           22,119
                           22,000
                           21,912
                           21,600
                           21,535       July peak

Technical Analysis:
DJIA and S&P have had a nice spike sleeping two days over the 20 and 50 days moving average, this is bullish.
In the mid-February both indexes nailed a major support DJ23,250 and SP2,531 (200 days moving average and from them they bounced up to get the today's levels. The February low should be the bottom of this correction, there is not any confirmation at this moment.
Last week both touched major support 2017 peak DJ24,876 and SP2,695 and bounced up showing a constructive price action.
The trend is up and is streghten.

Please click over the chart to enlarge it.

Fundamentals:
Yesterday the market reversed earlier gains and ended the day with a loss due to Mr. Jerome Powell's comments to Congress, new Fed's President, about four interest rates hike during 2018 instead three as the market expected initially. It was based in his higher revised perspective on the economy. The market thought immediately that the stocks prices were confronted with higher interest rates and took profit.
This is not the case, we are facing an excellent outlook on the economy which is very positive for the corporations and consumers therefore I expect at least 10% gains this year. What the FED sees is a strong and growing economy in an excellent market conditions capable to swallow the interest hikes. The inflation rate is under control.
The market is basing as I have explained before and preparing for the next leg up. It is very possible to see great volatility on the financial markets in the next weeks and months before the up action. This volatility is necessary for the basing or process. The support at DJ23,250 is very important and it would determine if we have seeing the low of these consolidation.

Dear traders and investors, take profit of the pullbacks buying on the dips.

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