Technically Still Bullish Bias

DJ Resistance:  18,668      All-time high

                           18,470

                           18,351      Old all-time high

                           18,247      August low

DJ Support:      17,995     Prior 18,016 strong support

                           17,700

                           17,579      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:

Major supports worked and the indexes bounced up from major supports DJ17,995 and SP2,117. They are very important for the bulls, if they break down the still bullish bias could change for a reverse.

We can see that the indexes are in the range. September is a volatile month and the volume increased a little bit but market expects higher activity, let's say more participants. DJ18,247 (August low) is now the resistance and the next DJ18,351 old all-time high.

The last 15 days high DJ18,450 approximately and where the DJIA has topped is the level to fill the first September gap, very technical. DJIA has failed two attempts to break the 50 days moving average in September (please watch the blue line in the chart).

The Trend is still leaning-bullish.

Please click over the chart to enlarge it.

Fundamentals:

Market got some negative economic news, others considere a flurry, like PMI Manufacturing index which went down to 51.4 from 52.1, those make that interest rates stay low and not allowing the FED to raise them due the decelerating economy. The low rates weak the dollar which is good for the exports competitiveness. Besides, the volatility will continue until the November election. 

We are facing a great uncertainty due the weak economic data, next FED decision and Presidential election. That raises the downside move risk and we could see a wealthy correction to 200 days moving average DJ17,600 and SP2,059. Those levels would be a very nice opportunity to buy stocks because the bull market is still in place.
Tuesday's rally was done after the Presidential debate because the market doesn't like uncertainty as the polls showed Clinton as winner. It doesn't mean that the market prefers Clinton, that means Trump is uncertainty for the market.

Dear traders and investors, until November we are going to navigate in rough seas, the market should work in the range. My opinion is to keep the cash aside to buy in the dips, there are good possibilties of a santa Claus rally before the end of the year.

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