Wednesday: QE tapering ?

DJ Resistance : 16.174      All-time high
                            16.097      All-time high close.
                            16.058
                            15.930

DJ Support       : 15.720      Strong (October pick)
                            15.687      50 days moving averages (50MA)
                            15.550      Strong
                            14.760      Very strong

Technical Analysis :
The DJ bounced up from the strong support area DJ15.721-15.797, technically the importance of this support is confirmed and the bullish bias too. The Dow Jones Index Average over this area is contructive positive and do not fear to be long. Below this support is another history.
It was the same for the S&P at SP1.775 and NASDAQ at 3.995. The two index bounced up.
The support DJ15.900 now is a resistance at DJ15.930. The DJ also is supported with the 50 and 200 days moving average.
The five years daily and one year daily charts have  intact positive trend lines. They work as support and both are not the same.
Please click over the charts to enlarge them.

Fundamentals :
The market behavior has been back and forth in these last days, something that do not surprise us in this time of the year. Specially this end of the year when we are facing the end of the QE3 and we don't know if we are in a robust recovery, the unemployment and consumption still have mist.
Why I am positive? Because the economic news, for example the last GDP numbers, non-farm payroll, Empire State Manufacturing Index (Federal Reserve Bank of New York), U.S. labor productivity, the Tankan Book (Bank of Japan), Europe is turning to growth, U.K. property houses prices are rising, and so on, in addition of the charts and technical analysis conclusions.
Why are the stock prices in these levels? It is because of the liquidity from QE1,2 and 3, the corporations have been reorganized so are efficient, competitive, and the cash they have right now. Those prices have to be adjusted but when? When the factors change and we are going to evalue the new reality.
Mr. Mohamed El-Erian thinks December taper as high as 60%, I have read that 88% of the funds managers don't expect December taper. Mi opinion is that tapering is going to begin next year because inflation is still low in these moments.

Dear trader and investors, this Wednesday all the market is waiting for the FOMC decision. Then, we are going to see how the market reacts. I am still with the possibility of Christmast rally for next week. The mouvements in the finantials market after Christmats are sudden and strong due the lower volume and the few participants.
I try to assist you by giving my views and analysis so you navigate in the market with rationality without emotions. I am a trader, I know very well how hard is to take decisions in these markets and how our emotions affect our trading.

KEEP THE COURSE ACCORDING TO THE TAKEN STRATEGY!

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

Ulises