DJIA: New Record Territories

DJ Resistance:  18,563      All-time high

DJ Support:      18,471.62 Friday low
                           18,351      Old all-time high
                           18,300      Light
                           18,171      April peak
                           18,104      2014 peak
                           18,016      Strong breakout
                           17,810      50 Days moving average
                           17,700
                           17,579      August inflection point
                           17,433      June low
                           17,390      220 days moving average
                           17,125      Very strong
                           16,933.43 Strong September high
                           16,667      Inflection point
                           16,520
                           15,980      Strong
                           15,450      Strong
                           15,371.33 Very strong 2015 low

Technical Analysis:
We have seen new closing highs this week. DJIA did a new all-time high and a new closing high. What we have seen ultimately is bullish.
DJIA supports are DJ18,471.62 (Friday low), 18,351 old all-time high and DJ18,016 in the short term.
We can appreciate a strong uptrend in DJIA. Seeing the strong "V" bounce up after Brexit fall, we can consider the target at DJ18,966 of this up move.
As the market is overbought and it has slept on the all-time high DJ18,351 without lowering the level, we can consider a consolidation phase before to continue to the upside target.
The technical backdrop of DJIA and S&P remain firmly bullish.
If DJIA and S&P visit their supports, buyers should come.

Please click over the chart to enlarge it.

                         
 Fundamentals: 
 During the last seven days we witnessed important and terrific events in the world:
Attack in Nice, coup d'etat in Turkey,  and problems between the police and citizenry in U.S.A. In spite of these events tremendous negative the stock market continued in its way to the upside doing new all-time highs. Why? The bond interest rates are too low and the best place to be is in the stock market because the Earnings Yield outlook is better than the bonds and that is the only thing that interest investors right now who are thirst of profits from more than a year as I have explained in the last week blog. Investors and traders that does not want to lose the fortune bandwagon have to jump into and continue with the fest. For that we have to pay attention to the volume and follow it.
Corporate earnings season is in place. We got an earthquake with Netflix against positive Microsoft and banks that did better than expected. Earnings and economic news will drive the market during the next two or three week with intensity. And possible political events like what happened in Turkey, France or in U.S.A. will affect the markets.
Dear trader and investors, we are in a straightforward up move well supported after technical analysis, fueled by the momentum, earnings and economic news in the very short term. Do not forget that global economy and geopolitical are not in shape, Brexit affects the world. What I am saying is that we are in a bullish path in the short term but how long will the fest last in the fortune wagon?

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