Consolidation

DJ Resistance :   16.588      All-time high
                              16.577      All-time high close
                              16.520      Very important

DJ Support      :   16.316       Tuesday's low
                             16.245
                             16.174       Strong (November peak and broke up)
                             15.700      Very strong (approx. Aug.,Sep.,Oct. peaks)

Technical Analysis :
As you may have noticed, the resistance DJ16.520 is strong and important for the bulls. This resistance has received four attacks in the last ten days and is still in place. The Dow Jones Industrial Average has formed a small range DJ16.174 - 16.520. In general, the market is in a consolidation but the bulls can't lose momentum because they risk to allow a correction after the earnings season.
DJ16.174 is the real battlefield between the bears and bulls.
You can see in the daily chart that the trend continues to the upside although the DJ did not get the all-time high again and could not overcome the resistance at DJ16.520. The daily chart is not toppish at this moment.
Trade respecting the supports and resistances and you will navigate in the market like a mature trader avoiding emotional decisions.

Please click over the chart to enlarge it.

Fundamentals :
The market is receiving a mixed picture from the earnings season, we still have ten or fifteen decisive days more before us. On the other hand, we got good economic news last week as Consumer Sentiment stays high, Industrial Production builts momentum and positive Housing Starts.
We are facing some contradictory results such as positive American Express which is good for consumers and the negative UPS expectations for the rest of the year.
Bulls need better earning news this and next week.
My positive factors for 2014 are two :
- Corporations are in good shape. They have cut costs, reorganized their structures and rationalized their businesses to keep good margins in the low growth environment which has been characterized in recent years.
- Corporations have plenty of cash waiting for the turn in the economy to invest in their expansions, increasing their businesses and incomes.
My concern is still in the consumption, the last weak news about opens positive expectations but we have to really see them.
FMI: Christine Lagarde "Optimism is in the air, the stage of ice has fallen behind". She expects seven years of fat cows from 2014 in her speech  to the National Press Association in Washington. She is actually optimistic although she acknowledges the risks that can affect the global economy.

Trend is still positive, we are in consolidation not in a correction, use the charts to navigate like an instrument flight where it does not matter if it is day or night.

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

Ulises