17,138 All-time record closing high
DJ Support: 16,980 Strong (breakout)
16,935 Strong 50 days moving average
16,743 Very strong (May peak)
16,588 Strong (2013 peak)
16,355 Strong
16,015 Very strong
Technical Analysis:
DJIA is consolidating in its range DJ16,980 - 17,167. The temporary break down of the range support did a small index damage but the chart formation is still bullish and well supported by 50, 200 days moving average and the one year positive trend line support. That means that sellers were not attracted at DJ16,980. The picture is almost the same for the S&P which broke down support at SP1,990.
Right now DJIA is the leader of the three indexes and needs to get a new record high and close over.
Please click over the charts to enlarge them.
Fundamentals:
The U.S.A. economy is on the recovery path. Important economic news are coming but the most is about the FED because we don't know how the economy will react without the extra stimulus. Market stability is based on low interest rates and we don't know if the bond interest rate will climb. Personally, I expect the continuation of low interest rates until the end of the next year. That is my expectation but it is not for granted, we have to see how the market evolves. Said that, we have to watch the FED policy changes and how it will affect the bond interest rates and consequently the stock market.
Dear traders and investors, this Wednesday ends September FOMC. All the market will focus on the statement at 2:00 o'clock. Possible, Mrs. Yellen will comment about the FED's exit plan. I am optimistic with the stock market because the unemployment is going better not at the level we need but has improved, the corporations are healthy and have cash, that means that interest rates can stay at the lowest levels. The comsumptions has to increase to support growth. Let's meet at 2:00 P.M.!
Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!
Ulises
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