18,206 Breakout
18,104 2014 peak
17,978 November peak
17,810
17,579 Inflection point
17,490 200 Days moving average
17,125 Old major support
17,050 Old strong support
16,933.43 September peak
16,667 Important
DJ Support: 16,410
16,232
15,980 Very strong
15,651.51 Important
15,370.33 Very important
Technical Analysis:
What a down movement almost 1,500 points of DJIA. S&P has done 10% correction.
Important supports have been broken DJ17,125 and DJ17,050. Volume came back and U.S.A. stock market entered in the earnings season with the 4th. Quarter results. ALCOA came better than expected that is positive.
The chart damages are so important, the bulls have to look for profound repairs before to expect for the next significant leg higher and it should take some time generating the base. We can anticipate a DJIA and S&P bounce up because both are oversold but the bias in the medium term is bearish.
It is hard to try to read the future what is clear is the bearish-leaning in the charts.
Please click over the charts to enlarge them.
Fundamentals:
Each year is unique and we have to measure it on its own merits and demerit. January first week was actually awful for the stock market. I find that U.S.A. and European Union economics are doing well. My worry is about fear, S&P 1,870 should be an excellent support but the dumb money, we are all in right now, could get scared and trigger a stampede sell-off.
The market is going to pay attention to the earnings season, oil, China, U.S. Dollar and FED guidance's in 2016 and especially during these first months of the year to try to build a backdrop for the year.
Dear traders and investors, the beginning of this year surprised all the market and we have in front of us a long year. Get ready!
Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!
Ulises
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