Reverse from unknown territories.

DJ Resistance:  26,616.71  New all-time high
                           26,200

DJ Support:      26,000       Light
                           25,904       Strong, support of consolidation range
                           25,788       20 Days moving average
                           25,700     
                           25,440       Strong
                           25,112
                           24,910       50 Days moving average
                           24,876       2017 peak
                           24,715.90  Strong, support of old range
                           24,500       Breakout
                           24,100
                           23,950
                           23,600
                           23,500       Gap upside
                           23,480       Gap downside
                           23,250       Strong
                           23,174
                           23,002       Strong, gap
                           22,890
                           22,795
                           22,582       200 Days moving average
                           22,420       Strong, breakout
                           22,119
                           22,000
                           21,912
                           21,600
                           21,535       July peak

Technical Analysis:
It is impressive how the market went up during January. In contrast to this scenery the three indexes reversed and came down to its important supports DJ25,904 and SP2,807.
The 20 days moving average is a solid support at DJ25,788. Next support is at DJ25,700. DJIA ends down 361 points or 1.4% the worst one-day percentage drop since May 17th. A consolidation phase has been long time overdue and probably it is developing. Although this possible reverse the trend continues showing a bullish trend in the mid and long term.
The response to supports will be important for the trend in the short term.

Please click over the charts to enlarge them.

 
Fundamentals:
The confirmation that the FED is going to raise the interest rates at least twice during 2018 started a bond sell off. The stock market corrected to the clear supports which have worked very well until now.
The stock market needs to rest consolidating its growth. But where? It needs to build a new base to go higher from the solid new base.
This profit taking is temporal due to the positive and clear economy, and the corporate profits based on the economy, tax cuts and the growing consumption.
Rebook numbers grew 3.2% at an annual rate lower than last month growth 3.8%.
Consumer Confidence went to 125.4 from previous month 123.1
State Street Investors went to 102.1 from last month 95.7.
As you can see the economy is clearly open the path for an excellent stock market year.
This coming Friday we will have the Unemployment Rate and the Non-farm payroll figures.
Pay attention to the spending bill deadline on February 8th.
Dear traders and investors, I still think that the stock market correction or consolidation is an splendid opportunity to buy at good prices but expect consolidation phases in the market to build base for new all-time highs.

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