Negative scenery

DJ Resistance: 17,350.64  All-time record high
                          17,279.94  All-time closing high
                          17,152       Prior breakout point
                          16,935       50 Days moving average



DJ Support:     16,674      Thursday low
                          16,588      Strong (2013 peak), 200 DMA
                          16,355      Strong (August low)
                          16,015      Very strong

Technical Analysis:
What a market reverse!
First and foremost I would like to say sorry because I could not be with you last week. I had to bring my mother to the hospital, thanks God all is ok!
The damage inflicted in the charts by this reverse is serious. To erase it, the benchmarks should come over September's low DJIA16,935, S&P1,978 and NASDAQ Composite 4,480.
The three benchmarks are below their 50 days moving average which is negative.
Please watch in the daily chart the negative trend line that works as resistance for DJIA. The 200 days moving average has worked as an excellent support for the DJIA in the last year and now should do the same, let's see it!
The market is in a bearish mood in the short term, this time the supports points drew sellers and they battled the buyers. The hunter bargains will appear, when and what level at?
The bull market is still in place in the long-run, please watch the 10 years weekly chart.  There is a clear positive trend channel and inside it you can watch the important minor supports as positive trend lines in red.
We are facing an important reverse, especially in October, but the trend in the long-run is up.

Please click over the charts to enlarge them.

Fundamentals:
The U.S.A. economy is doing well. We are entering in the fourth earnings season of the year. What worries me is the quality of the new jobs created in the last months. They are not the same as they used to be until 2008. It affects the consumption. We know that the U.S. corporations are doing good money. The countries in the European Union are fighting against the disinflation and deflation, it is a big issue for the recovery. FMI announced today its expectation for the rest of 2014 and 2015, they are not very encouraging http://ep00.epimg.net/descargables/2014/10/07/c4ee2050a389c5db818cb0b1acc4a9e1.pdf.  FMI is asking for more reforms to the European countries and to fight against deflation in a more convinced way. Its world expectations became lower than the last report.
All these and especially the geopolitical issues have attempt against the recovery and have been the trigger for the reverse. We cannot speak right now about a correction.
In my opinion these markets need a correction over ten percent to get a positive path without obstacles. The February last one was eight percent.
Trading: Regularly October is a positive month until the end of the second and maybe third week. Then the market relaxes, don't forget the 1987 and 1929 crises, investors are superstitious. The next up move is in November, the Thanksgiving rally. This pattern doesn't work every year but is valid.
Dear traders and investors, I suggest you to trade in the next fifteen days through your charts base. The bull market is still in place but there is a lot of space for a big correction and the geopolitical environment, the Russian ruble, the Argentinian debt, European small growth, Chinese growth below 7%, etc. weigh on the market. Please keep cool!
Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!

Ulises