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
Maximum profit everyday on intraday Get & click here CapitalStars
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