DJ Resistance: 26,616.71 All-time high
26,000
28,800.35
25,516
25,316 50 Days moving average
DJ Support: 25,000 20 Days moving average
24,876 2017 peak
24,505
24,280
24,100
23,912
23,600
23,400
23,250 Very strong
23,247 200 Days moving average
23,174
23,002 Strong, gap
22,890
22,795
22,420 Strong, breakout
22,119
22,000
21,912
21,600
21,535
Technical Analysis:
NASDAQ Composite has gotten a new all-time high and it is moving in uncharted territory with a solid up trend. S&P has broken up the negative trend line and it is over 50 days moving average, this last one is now a strong support. S&P trend is bullish but if it breaks down the 50 days moving average it could change, it should attack SP2,800.
DJIA has formed a symmetrical triangle and the index is still in, it has to break to the up or downside and explode. Next targets to the upside are DJ25,316 (50 days moving average), DJ25,316 and DJ25,800. DJIA trends to the upside in the mid and long term barring a violation at DJ23,250.
There is a "common gap" on Friday, normally that kind of gaps are filled. It is just below DJ25,000.
Please watch the chart where you aregoing to see the battlefield.
Please click over the chart to enlarge it.
Fundamentals:
Last week the market exploded due the excellent job report. The market is mixed during the last days. We can consider that is breathing before more gains. I think this is a profit taking and a reaction from the last uncertainties like the new Secretary of State.
February low seems to be the strong support for the correction. NASDAQ Composite has done new all-time highs, S&P is near its all-time high and DJIA is lagging but supported.
FOMC is for Mach 21st and I expect a probable 0.25 rate increase that could trigger an up move to the all-time highs.
The economy continues its positive path, corporations continue doing money, consumption is strong and the market looks bullish. But we have to pay attention to some instabilities like United Kingdom - Russia about the assassination of the ex-spy, it could escalate. It sems to me that volatility will be present for weeks.
Dear traders and investors, life is not easy and the markets are the same. I am still positive with the stock market and the U.S. economy therefore I expect 10 to 15% gains for 2018.
Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!
Ulises
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