Consolidation range

DJ Resistance:  16.631      All-time high
                            16.600
                            16.450

DJ Support:        16.174      November's peak
                            16.015      Strong
                            15.721      Very strong
                            15.340,23 Strong

Technical Analysis:
The market continues in a consolidation range. What does it mean? It means equality between bulls and bear forces and the lack of conviction to remain over the new historical highs. Six weeks ago I mentioned that we would see S&P1.900 and very probably SP2.000 this year. We almost got the first target at SP1.897. The problem is that right after the new highs the index goes down to the support of the range.
I would like you to pay attention to last Thursday the support DJ16.174 (November's peak) worked very well and last Friday the support at DJ16.040 worked too, not exactly (DJ16.015). Monday's bounce up put the DJ at DJ16.173 (almost DL16.174 November's peak) like a resistance before the closing. It is to show you that the supports and resistances have worked technically.
Technically again, the damage in the S&P and DJIA is seriously and to neutralized it the DJ has to close over the November's peak and 50 days moving average and it did it this Tuesday. The S&P has to close over its 50 days moving average (SP1845) and SP1.850 (December and January peak) but still did not. I conclude with a bearish bias right now.
It seems to me that the market needs a deeper correction to offer lower stock prices to the investors and I am sure they are going to buy them.

Please click over the charts to enlarge them

Fundamentals:

The market is in a new earnings season and it should be the fuel to brake the new range DJ16.015 to 16.631.

After analyzing the winter figures I accept that the bad weather has influenced the economy although I realize that the inventories grew on January and February. We are facing mixed economic news and the economy is growing. For me, the corporations are in shape and it is very possible that their earnings are going to be positive. My question is still about jobs and consumption. The 80% of the new jobs are U.S. $13.50 per hour or less, with those figures we cannot expect a strong internal consumption. 

Dear traders and investors, let's trade the earnings season. Technically I think the market needs a deeper correction to offer excellent opportunities to buy, and fundamentally, the same. Personally I expect a good earnings season, this is a contradiction because if there, will be not a possibility for a deeper correction.

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

Ulises