Supports at Work

DJ Resistance: 21,169      All-time high
                          21,000
                          20,820      20 Days moving average
                          20,743

DJ Support:    20,600
                         20,470      50 Days moving average
                         20,410
                         20,125      Strong January peak
                         20,000      Very strong
                         19,800    
                         19,732      Strong
                         19,678      January low
                         19,200      Strong
                         19,090
                         19,080      200 Days moving average
                         18,800
                         18,668      Old all-time high
                         18,247      August high
                         18,000      Strong
                         17,833.23 November low
                         17,579      Inflection point
                         17,125      Very strong

Technical Analysis:
Supports DJ20,400 and SP2,331 equivalent to 50 days moving average worked well and indexes bounced up. The trend in the near trend is in a consolidation phase but in the mid-term is bullish-leaning. It seems that the consolidation phase has still to run before to go over the next resistances and look for a new all-time high.
The late price action in March is technical and it is very difficult to determine the next walk of the DJIA and S&P, what shows clearly is that is forming a consolidation pattern.
The break through SP2,351 and DJ20,600 show weakness in the indexes in the short term. The recovery we saw this Tuesday is very positive but this time the market needs a consolidation phase.

Please click over the chart to enlarge it.

Fundamentals:
This retracement or correction of the market is very important because the movement is technical and in the subjective field some uncertainties about Trump's capacity to apply his reforms like healthcare, taxes and infrastructure have weighted. But these gridlocks are still in place with fascinating expectations in the economy during 2017.
The economy is doing actually well, Consumer Confidence exploded to 125.6 level not seeing from the year 2,000 which reflects solid expectations for income and jobs, Retail Sale Data is lagging. Pending home sales jumped in February, US Home prices hit 31 months in January: Case-Schiller, US trade deficit declines in February, etc. Watch this coming Friday Consumer Sentiment.
S&P retraced to technical supports and bounced up, it is technical and orderly. That no means that market is going immediately to the all-time high, I warned you that support will be tested furiously, the market is in consolidation and would need more fuel like earnings season which is coming in the second week of April.
Dear traders and investors, 2017 looks illuminated for the stock market, I am still very positive with the market. Try to stay long and buy in the deeps. We are watching and looking the market, if there is a change in the direction we will warning you.

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