Summer rally?

DJ Resistance:   17,075        All-time high
                             17,024.21   All-time closing high
                             16,950

DJ Support:         16,818
                             16,743        May peak now strong support
                             16,580        Strong
                             16,312        Strong
                             16,015        Very strong

Technical Analysis:
DJIA and S&P did new record highs and the three indexes point up.
The last two days retracement show the consolidation. The new record high breakouts are not followed by powerful follow through as it is regularly. The market is walking in unknown territories step by step.
The first support is at DJ16,818 and the next is at DJ16,743 (May peak)
The three Moving Averages 20, 50 and 200 days point up and support the DJIA.
Technically it is clear to be long over DJ16,743.
Conclusion, The DJIA is consolidating with an upward bias. The trend is clearly up barring a transgression of May peak (DJ16.743).

Please click over the chart to enlarge it.

Fundamentals:
The market got positive economic news and went to new record highs. I am optimistic with the economic recovery "The latest American employment report leaves little doubt the American jobs machine is back "(The Economist http://www.economist.com/blogs/freeexchange/2014/07/americas-economy?fsrc=scn%2Ftw%2Fte%2Fbl%2Fed%2Fisthistheboom).
I expect also a positive 2nd. quarter earnings season.
But, there is a "but". We have two short term scenarios. The first is to get new records highs fueled by the good shape and finantials results of the American corporations. The second is a correction to shake the stock prices and get solid realistic price levels. It is very possible to get a "Summer rally" in the next three weeks and after that a boring "Summer Doldrums". This year I consider if we have a "Summer rally" it is not going to be a strong up move and during August and September could be the ideal time to sincere the stock prices. What I am telling you is subjective.

Dear traders and investors, I have indicated at the beginning of the year that we were going to see S&P at 1,900 and very probably SP2,000 in 2014. I still expect the SP2,000 but we are facing three months that could be difficult or boring to say the least. I think it is not a bad idea to hedge some positions until September or take profits and enjoy a very nice summer in August to be back renewed at mid-September. As I  have explained I try to assist you in the navigation through theses difficult markets. I will be every week with my commentaries. Think about it!

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

Ulises