Dow Jones Well Supported

DJ Resistance:  26,616.71  All-time high
                           26,000
                           25,835.35  February high
                           25,691
                           25,500       Gap upperside
                           25,400       Gap downside
                         
DJ Support:      25,215
                           25,150
                           25,086      May high
                           25,000       Strong, 50 days MA
                           24,945
                           24,816       2017 high
                           24,719       2017 close
                           24,700       200 Days moving average
                           24,280
                           24,000       Strong
                           23,500
                           23,250       Very strong
                           23,173       Strong, gap
                           23,002       Strong, gap
                           22,890
                           22,795
                           22,420       Strong, breakout
                           22,119
                           21,912
                           21,600
                           21,535

Technical Analysis:
The bull trend is in play. The indexes have retraced during the last trading days but the trend have not changed. The DJIA last retracement is more pronounced than the S&P.  DJIA is supported by the key negative trend line (please watch the chart). Support at DJ25,150 is crucial and is going to act as a gauge for the bulls and bears. We have to assess the bounce from that support because it is going to define if the bull trend continues. Next support is the 50 days moving average at DJ25,000 which is pointing to the support at DJ 25,120 - 25,150.
The three financial indexes have well supported during this last downturn. DJ25,835.35 (February high) is the next target for DJIA and the bulls have to give the battle there.
DJIA mid-term bias is bullish barring a violation of the supports.

Please click over the chart to enlarge it.

                         
Fundamentals:
Trade war is weighing on the financial markets and now Turkey with its weak Lira is on the table. President Erdogan is claiming to U.S.A. the repatriation of Fethullah Gulen, a leader of the movement against Erdogan. President trump claims to Erdogan the repatriation of the evangelical Andrew Branson. President Trump tried to negotiate the exchange of them pressing Erdogan with higher tariffs for the Turkish steel and aluminum, the Lira felt immeadiately and the crisis could affect Europe especially the Spanish, French and German banks.
Every time that the three indexes take the way to the upside looking for their resistances international political disagreement frustrate the upside movement despite the robust U.S. economy.
Also remember that August is a lazy month for the stock market due the Summer doldrums. Senior traders are in holidays. You can realize that looking at the volume.
The economy is vigorous, last Small Business Optimism Index showed 107.9 from prior 107.2. Redbook retail sales on same stores was up 4.5% on year to year basis. Inflation is not a concern.

Dear traders and investors, August is a hard month for the markets, I expect the market in the range barring an important violation. My bias is to the upside this semester what worries me is the political events.

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