DJ Resistance: 18,351 All-time high
18,206 Breakout
18,104 2014 peak
17,978 November 2015 peak
17,810
DJ Support: 17,579 Inflection point
17,139 200 Days moving average
17,125 Old resistance
17,050 Old strong resistance
16,933.43 September 2015 peak
16,667 Very strong inflection point
16,468
16,200 Light
15,980 Very strong
15,450 Strong
15,370.33 Very strong 2015 low
Technical Analysis:
The three indexes are strengthen and DJIA and S&P have broken out important resistances. DJIA double bottom (W) has reached its target which is very positive and shows the uptrend although the overbought condition in the short term. The battle ground to the upside begins at DJ17,810. All this area is formed by important resistances specially the negative trend line coming from the all-time high DJ18,351. For S&P are SP2,054 and SP2,080.
DJIA supports starts at DJ17,139 200 days moving average, DJ17,125 old strong resistance and DJ17,050 old very strong resistance and finally DJ16,933.43 September 2015 peak. S&P supports are SP2,020 September peak and November 2015 low.
If negative trend line is broken up, the trend in the long term will shift to a bullish vue. I think the market needs a consolidation period.
Please click over the chart to enlarge it.
Fundamentals:
The two rates hick for 2016 offered by FED brought calm to the markets, personally I would prefer only one. This FED decision could incentive the currency war because a stronger U.S. Dollar will affect the exports. Asia countries need weak currencies to maintain their exports and their economic activities. European Union needs a Euro weaker to activate its economy looking for better exports.
This is one point to consider, the other one is if the stock market is overvalued, if that the stock prices should decrease. Corporate earnings are failing from three quarters ago. But if the market considers an increase in the consumers' potential based on employment and good wages it is the time to buy.
Dear traders and investors, the Brussels's attacks are awful and attempt against the freedom. What important is that the markets in U.S.A. resisted yesterday, European took loses. This week the markets are going to be drive by geopolitical effects due the treacherous terrorist attack in Brussels and Easter.
Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!
Ulises
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