DJ Resistance: 18,668 All-time high
DJ Support: 18,470
18,355 50 Days moving average
18,351 Old all-time high
18,247 August low
18,171 April peak
18,016 Strong breakout
17,700
17,569 August 2015 inflection point
17,433
17,125 Very strong
16,933.43 Strong September 2015 high
16,667 Inflection point
16,520
15,980 Very strong
15,450 Strong
15,370.33 Very strong 2015 low
Technical Analysis:
S&P and DJIA stay in the range formed from July. We can say that these ranges were boring during August, the indexes stayed near the upper side during the month which supports the bull bias barring a breakout of the technical supports, DJ18,470, DJ18,355 (50 days moving average), DJ18,351 (old all-time high), DJ18,247 (August low) and the strong support at DJ18,016.
As DJIA is stayed near the new all-time high trying to do new highs we can conclude the bullish trend in the short and long term are in play and provided supports remain unbowed.
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Fundamentals:
We got last week the non-farm payroll which was lower than expected. The unemployment stayed same as prior month.
ISM Service-sector gauge falls to its lowest level since February 2010. Companies of health care, retail goods and financial advice grew in August at a worrisome level. The Institute for Supply Management said its non-manufactured index fell to 51.4% from 55.5% in July. It is still positive because it is over 50%. The vast majority of Americans are employed in the service oriented businesses that account for much of the U.S. growth.
The ISM new-orders index decreased to 51.4% from 60.3%, it is the lowest level since December 2013.
ISM Manufacturing came last Thursday lower than expected at 49.4%.
These negative indexes could be temporally week, hopefully, after the creators of them. We have to follow and see what is going to happen with them in the future.
Volume is coming back slowly to the market that will confirm or negate the prices level of the stocks.
These bad news are good for the stock market because the economy is growing slow but with no fear of recession and all that means low interest rates.
Dear traders and investors, these last economic news will not allow the FED to increase the interest rates in September, I expect it for December after a confirmation of the recovery of the bad figures.
Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!
Ulises
Equity benchmarks recovered in late trade as the Sensex gained 18.69 points at 28372.23 and the Nifty up 11 points at 8726.60.
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