18,206 Breakout
18,104 2014 High
DJ Support: 17,810 Light but important
17,579 Strong
17,465 5 months low
17,050 Very Strong
Technical Analysis:
The strong support DJ17,579 prior last five months low was penetrated but the bounce up was done in a very constructive way by the bulls. The resistance at DJ18,810 and the 50 days moving averages (approx. 17,970) were surpassed and the market continued its way to the upside strongly looking for the resistance at DJ18,104 (2014 high) with determination. It also has to surpass the negative trend line (please, watch chart enclosed). It has rallied from five months low. This scenario is constructive and bullish for the medium-term.
DJ17,810 remains as important support.
Please, click over the chart to enlarge it.
Fundamentals:
Greek debt and Chinese stock market correction have generated a 200 days moving average test in the three indexes. That moving average was penetrated and the market bounced up which means that buyers were attracted. This shows that the uptrend is still in place for the medium term.
DJIA, S&P and NASDAQ COMPOSITE will try again the upper band of the trading range (DJ17,465-18,351) but I think more sideways.
This Wednesday and Thursday will be hectic because Mrs. Yellen visit to the Congress, she has to touch the interest rates, and the better than expected Chinese data, the Greek Congress should accept or refuse the terms of the bailout proposed by EU, FMI and European Central Bank, finally the meeting of the Central Bank of Canada about interest rates.
Dear traders and investors, DJIA is for new highs but needs more fuel. We are going to see it if the earnings season would be positive and if the Chinise stock market finds a bottom. Hectic days are in front of us.
Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!
Ulises
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