18,206 Breakout
18,104 2014 high
DJ Support: 17,978 November 2015 high
17,810
17,579 Inflection point
17,400 Strong
17,125 Very strong
16,933.43 Strong September 2015 high
16,667 Inflection point
16,468
16,200 Light
15,980 Very strong
15,450 Strong
15,370.33 Very strong 2015 low
Technical Analysis:
The breakout of DJ17,810 and S&P2,080 reinforce the bullish view and momentum. Next important resistances are DJ18,206, 18,312and DJ18,351 all-time high.
Strong support at DJ17,810, DJ17,400 and very strong at DJ17,125. And for S&P at SP2,040 very strong and SP2,020.
The chart shows the high possibility of a follow-through with the target DJ18,351.
Please click over the chart to enlarge it.
Fundamentals:
Last economic news are coming weaker than expected for example Consumer Sentiment below expectations with four straight months, last lecture is 89.7, below 100 is negative. Besides the retail sales weakness. U.S. housing starts and new permits sink 9%, Industrial Production -0.6%, bank stocks have plummet and so on.
Interest rates are observed by investors and they doubt about interest rates hike due the last weakness news. Then investors look for the stock market which is the best place to stay now.
In my opinion the stock market is bullish due the corporate earnings season as I have explained in my prior blogs and they do not expect a soon increase in the interest rates. They need the confirmation of better expectations in the corporate earnings growth to get higher stock prices.
Dear traders and investors, I think that is possible to visit the all-time high but to maintain the bullish momentum the market needs a combination of low interest rates, better corporate earnings growth and GDP between 1 to 2 % at least. I think that this rally from February will finish in a sideways market after earnings season would finish. The other possibility is to take south for a while.
Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!
Ulises
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