After the partition of Ukraine

DJ Resistance:  16.576,66  All-time closing high
                            16.520       Strong
                            16.334       Light

DJ Support:        16.174       November's peak
                            16.040       Strong
                            15.721       Very Strong
                            15.340.23  Strong

Technical Analysis:
S&P bounced back from support indicated last week at SP1.839 which is a bullish sign. Next resistance is SP1.868 and all-time high SP1.884.
The DJIA last week backdrop broke down supports and bounced up from well-defined support at DJ16.040 (see last week update). DJ has rallied and closed over DJ November's peak DJ16.174 and 50 days moving average DJ16.140. Tuesday's close was at DJ16.336.19 old short terms support now resistance. Technically it is bullish.
All these show that the uptrend is the path but the last DJ, S&P and NASDAQ backdrops brought some doubts in the short term. Specially why DJIA can not do new highs? If these hesitations continue we are going to find lower lows which shows weakness.
The DJ needs to confirm the uptrend closing over DJ16.576.66 all-time closing high or at least over the strong resistance DJ16.520.
Please click over the charts to enlarge them.

Fundamentals:
Once again, we have witnessed what really affects the market is the economy not the drums of war. Geopolitical tensions worked last week, after checking the "faits accomplies" by Russia and some applied sanctions by U.S.A., E.U., and Japan the stock market rallied on Monday and Tuesday. Incredible? No, so is the regular pattern. What I want to say is that the tomorrow's decision about the tapering is more important for the stock market psychology than the geopolitical uncertainties.
We have important announcements for Wednesday and Thursday that are going to weight into the markets: current account deficit, FOMC announcement, Yellen press conference, weekly jobless claims, existing home sales, Philly FED, leading economic indicators.
The earnings season is finished, we have to wait until April for the second 2014 earnings season.
I feel the lack of conviction in the market which is acceptable by the weakness in the economy. We need to get more information to determine if it is due to the bad weather. I think corporates are in good conditions. I am not clear with the banks because we don't know exactly their assets. What we know clearly is that they and the government need low interest rates. Can you imagine their debt at 5 or 6 % p.a. or lower prices in the stock market?
Dear traders and investors, according to the technical analysis the stocks are in a bull market. According to fundamentals should be the same but lately we are getting some weak or neutral economic news and the recovery is not strong for the moment.

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

Ulises