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martes, 21 de junio de 2016

In the Range Bullish-Leaning

DJ Resistance:  18,351      All-time high
                           18,206      Breakout
                           18,171      April peak
                           18,104      2014 peak
                           18,016      June peak
                           17,980      November 2015 peak

DJ Support:      17,800      50 Days moving average
                           17,750      Light
                           17,579      August 2015 Inflection point
                           17,500      Last week low
                           17,332      May low
                           17,125      Very strong
                           16,933.43 Strong September 2015 high
                           16,667      Inflection point
                           16,520
                           16,200      Light
                           15,980      Very strong
                           15,450      Strong
                           15,371.33 Very strong 2015 low

Technical Analysis:
June low created a good support and the indexes bounced up from there. What it is important to remark is that S&P and DJIA have bounced up and overcame the 50 days moving averages (SP2,080 and DJIA18,000) and now both of them became important supports. August breakdown DJ17,579 proved its validity with the bounce up.
DJ18,016, June peak, is the next important resistance besides the negative trend line that forms the upper side of the triangle, please watch the chart. Regularly in technical analysis, triangles explode when they break their resistance or support and we could get a strong movement.
S&P resistances are SP2,105 and 2,120.
The backdrop is still bullish-leaning and constructive to the upside.

Please click over the chart to enlarge it.

                         
Fundamentals:
Brexit is driven the markets because all eyes are on it. When the financial participants realized that a U.K. majority was for to stay in the European Union the markets bounced up from a steep fall, please watch Thursday of last week.
There are not important economic news this week, the only one is Brexit this June 23rd. And if the European Union (EU) stays unified as I expect, it is very possible to get a rally to the all-time highs DJ18,351 and SP 2,135 where the real battle is going to take place. I think to exceed those resistances, the investors should not have concerns about the economics. For that we have to wait until July first to digest ISM Manufacturing, next ISM Services and employment on July 8th, finally corporate earnings season on July.
Dear traders and investors, Brexit, Brexit and Brexit is in front of us and it is driven the markets. I would like to say to you which is the next market steep but it is impossible. All depend on Brexit in the very near term. And for new highs, the market needs more fuel that means no concerns about economics, better corporation growth and the change in the corporate earnings increasing them. The last five earnings season have contracted consecutively.

Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!
Ulises
   
                         

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