DJ Resistance: 17,151.56 All-time record high
17,130
17,055
DJ Support: 16,877 Monday's low, 50 days moving average
16,805 Strong
16,743 Very strong May peak
16,580 Strong
16,343 Very strong
16,015 Very strong
Technical Analysis:
The S&P did a new record high at SP1,991, the DJIA did not. That means that DJ is weaker than S&P right now. Watch the S&P like the leader looking for the SP2,000.
The market is still consolidating in the range (DJ16,743 - 17,130).
The 50 days moving average acts and acted in the year to date chart as excellent support which is bullish for the blue-chip benchmark.
The DJIA scenery is positive and shows the uptrend.
Please click over the charts to enlarge them.
Fundamentals:
The U.S. economy is showing recovery. The proof of that is the bunch of latest constructive economic figures and positive earnings season.
This and next week, the market is going to receive important economic news to sustain the recovery besides the corporate earnings. You can watch the list like ADP employment, GDP, personal income, consumer spending, consumer sentiment and so on. The most relevant would be on Friday: unemployment rate and non-farm payrolls. All of them could be the catalyzers for attempt new record highs.
Dear traders and investors, "Summer Rally" time is finished. This week and next, we could see an up move but I don't expect an explosion. I think that August could be a very boring month and very difficult to navigate in the market because the risk of a correction is going to be present during all the "Summer Doldrums". Geopolitical issues are heavy and they could trigger confrontations. The market volume is going to decrease and easily we could be in front of hectic movements. This kind of volatility is not good for trading. I suggest you to take some rest in the next six weeks. I think we will lose hair this "Summer Doldrums", nothing is written, we'll see and we'll trade accordingly to the signals and market trend. We are going to work more with fundamentals next month.
Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!
Ulises
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