18,470
18,447 September gap unfilled
18,376 50 Days moving average
18,351 Old all-time high
18,247 August low
DJ Support: 17,995 Low of the support area
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
15,370.43 Very strong 2015 low
Technical Analysis:
DJIA and S&P stays in the range but they approximated the low range band on Tuesday, it is important the support on DJ17,995 and SP2,117. Those levels are bull-bear gauge and it would be a real battle field. Below those level the alarms will be triggered.
DJIA has to overcome important resistances at DJ18,351 (old all-time high), 18,376 (50 days moving average) and 18,433 to fill the September gap to satisfy the bulls. DJIA tried to fill the gap and failed, on Tuesday it reversed and went down.
We can say that DJIA, S&P and NASDAQ COMPOSITE have softened but they remain bullish-leaning over their important supports.
Please click over the chart to enlarge it.
Fundamentals:
British pound weakness, U.S. Dollar resurgence, oil up prices (Energy is the best performing sector in 2016), IPO market actually impresses. All that is bullish for the stocks. Earnings season is in place, Alcoa suffered losing 11.4% after its quaterly results. But market does not like uncertainty and the Presidential election in November is going to drive the market and if it sees a winner we are going to have a rally. Conversely the market is going to stay in the range until the elections end in November with the risk of supports break down.
Dear traders and investors, Monday's rally gave to me the impression that the risk is back, the reading is bullish. Do not forget while the interest rates are so low the place to invest is the stock market. Volatility is going to be present during the next 4 weeks. Buy only in the deeps.
Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!
Ulises
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