16,970.17 All-time closing peak
DJ Support: 16,900 Near term
16,743 Former all-time closing high
16,620 Strong
16,312 April's low
16.015 Very strong
Technical Analysis:
The DJIA and S&P have gotten new historical highs after the last rally. The S&P is looking for SP2,000 and DJ is very near to DJ17,000. Both are navigating in new territories.
The first support is at DJ16,900, it is light but necessary to get the DJ17,000. The next one is DJ16.743, this time it should be very strong. It was the former all-time high resistance, now support.
Please watch on the six month chart the "Positive Trend Line", long over it.
The longer-term trend points up undoubtedly. The retracement are to buy and increase long positions or for the newer participants while continuing to assess the market in its pullbacks.
It would be healthy a consolidation phase over DJ17,000 before the possible "summer rally". Volume has increased in the last two weeks which is positive to sustain the rally.
Please click over the chart to enlarge it
Fundamentals:
"Sell in May and go away" didn't pay to traders and investors this year. The market is doing new record highs according with the improvement in the economy, the corporate earnings and the cheap money. The interest rates are still low. The emerging markets (BRICs) are not anymore the stars, they are confronting some problems and its rapid growth is committed. The capitals are flying again to U.S.A. and Europe.
Dear traders and investors, finally we got what we were expecting with patience and inner strengh. I think that the market is going to consolidate its accomplishments and we will see in July with the earnings season as catalyzer if we have a beautiful summer rally. For the moment I suggest you to focus on the positive trend line that is defined in the six month chart.
Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!
Ulises
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