S&P500 and NASDAQ at New Record Highs

DJ Resistance:  26,616.71  All-time high
                            26,435       January gap upper side
                            26,338       January gap downside
                         
DJ Support:       26,000
                            25,888
                            25,835.35  February high
                            25,691
                            25,548       20 Days moving average
                            25,079       50 Days moving average
                            24,991       Strong
                            24,816       2017 high
                            24,786       200 Days moving average
                            24,719       2017 close
                            24,000       Strong
                            23,509       Strong
                            23,250       Very strong
                            23,173       Strong, gap
                            23,002       Strong, gap
                            22,890
                            22,795
                            22,420       Strong, breakout
                            22,119
                            21,912
                            21,600
                            21,535

Technical Analysis:
S&P 500 and NASDAQ Composite have done new record highs and it seems that there are not sellers at those level. When that, the absent of sellers will draw buyers at SP2,873 (breakout and old all-time high). If the index stays over this level the S&P target will be SP2,923.
Dow Jones is lagging also this time but it has a clear up trend. It should visit its all-time high at DJ26,616.71.
Taking the DJIA August high and August low the target is 26,423 equivalents to the S&P 500 target at SP2,923.
S&P 500 and NASDAQ Composite are touching uncharted territory. The three indexes trend is bullish.
DJIA over DJ26,000 is bullish and if it breaks the all-time high DJ26,616.71 the new target should be DJ 29,800.
The previous up move in August and its down retracement to 50 days moving average, and its bounce up with new upside move should touch DJ26,423 as a target just the January gap area DJ26,338 - 26,435.

Please click over the chart to enlarge it.

Fundamentals:
August is almost ended; this month is painful for traders because the volume decreases and senior traders take holidays. That explains the high volatility despite the Summer doldrums.
The market took the up way again due the news about China and its will to avoid a trade war, the commercial agreement between U.S.A. and Mexico, and finally the positive expectations about U.S.A - Canada commercial agreement.
The bullish bias is supported by the robust economy of U.S.A. and the consumers that support the promised positive corporate results based on the reduction of taxes.
Consumer Confidence Index at 133.4 which is the strongest in almost 17 years. Redbook report about retail sales in a same store increased 5.1% in a y/y base, last month it was up 4.7%.

Dear traders and investors, be prepared for the new month coming next week. The market activity will increase and I expect to see new all-time highs this year and I am almost sure that this pace will continue for a considerable period.

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

Dow Jones Well Supported

DJ Resistance:  26,616.71  All-time high
                           26,000
                           25,835.35  February high
                           25,691
                           25,500       Gap upperside
                           25,400       Gap downside
                         
DJ Support:      25,215
                           25,150
                           25,086      May high
                           25,000       Strong, 50 days MA
                           24,945
                           24,816       2017 high
                           24,719       2017 close
                           24,700       200 Days moving average
                           24,280
                           24,000       Strong
                           23,500
                           23,250       Very strong
                           23,173       Strong, gap
                           23,002       Strong, gap
                           22,890
                           22,795
                           22,420       Strong, breakout
                           22,119
                           21,912
                           21,600
                           21,535

Technical Analysis:
The bull trend is in play. The indexes have retraced during the last trading days but the trend have not changed. The DJIA last retracement is more pronounced than the S&P.  DJIA is supported by the key negative trend line (please watch the chart). Support at DJ25,150 is crucial and is going to act as a gauge for the bulls and bears. We have to assess the bounce from that support because it is going to define if the bull trend continues. Next support is the 50 days moving average at DJ25,000 which is pointing to the support at DJ 25,120 - 25,150.
The three financial indexes have well supported during this last downturn. DJ25,835.35 (February high) is the next target for DJIA and the bulls have to give the battle there.
DJIA mid-term bias is bullish barring a violation of the supports.

Please click over the chart to enlarge it.

                         
Fundamentals:
Trade war is weighing on the financial markets and now Turkey with its weak Lira is on the table. President Erdogan is claiming to U.S.A. the repatriation of Fethullah Gulen, a leader of the movement against Erdogan. President trump claims to Erdogan the repatriation of the evangelical Andrew Branson. President Trump tried to negotiate the exchange of them pressing Erdogan with higher tariffs for the Turkish steel and aluminum, the Lira felt immeadiately and the crisis could affect Europe especially the Spanish, French and German banks.
Every time that the three indexes take the way to the upside looking for their resistances international political disagreement frustrate the upside movement despite the robust U.S. economy.
Also remember that August is a lazy month for the stock market due the Summer doldrums. Senior traders are in holidays. You can realize that looking at the volume.
The economy is vigorous, last Small Business Optimism Index showed 107.9 from prior 107.2. Redbook retail sales on same stores was up 4.5% on year to year basis. Inflation is not a concern.

Dear traders and investors, August is a hard month for the markets, I expect the market in the range barring an important violation. My bias is to the upside this semester what worries me is the political events.

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

                         
                               

Bull Trend

DJ Resistance:  26,616.71  All-time high
                           26,000
                           25,835.35  February high
                           25,000

DJ Support:      25,402
                           25,086       May high
                           24,989       20 Days moving average
                           24,945
                           24,902       50 Days moving average
                           24,876       2017 High
                           24,819       200 Days moving high
                           24,719       2017 Close
                           24,280
                           24,000       Strong
                           23,500
                           23,250       Strong, gap
                           23,173
                           23,002       Strong, gap
                           22,890
                           22,795
                           22,420       Strong, breakout
                           22,119
                           21,912
                           21,600
                           21,535

Technical Analysis:
DJIA has higher lows from April's low. Same picture has S&P 500. That is bullish.
Both indexes are over 20, 50 and 200 days moving average and those moving averages are pointing up in their natural positions let's say first 20, second 50 and third 200 days. They clean the field for the bulls.
The first six months of the year had DJIA and S&P indexes in a range. NASDAQ Composite got a new all-time high.
The important DJIA support DJ 23,250 was fought in the last semester by the bears twice getting the low at DJ23,344. The support worked well.
The consolidation range for the semester is DJ 23,250 - 26,616.71. The short-term consolidation range is DJ24,000 - 25,835.35.
S&P support at SP2,802.
The trend is bullish-leaning.

Please click over the chart to enlarge it.

Fundamentals:
The markets continue with their ups and down but showing resilience. In summary they go up step by step.
U.S.A. and EU reached an agreement on trade. Zero tariffs on non-automotive industrial goods are the goal, steel and aluminum the same. They also agreed to reduce tariffs on cars. U.S.A., Mexico and Canada are working on the same way. China tries to collaborate and avoid a trade war. Intentions are not an agreement signed but show the goals. Nobody in the world wants a trade war.
We are in earnings season and after three or four weeks in this process it is normally to take profits. This season is very positive notwithstanding Twitter and Facebook.
The economy also is doing well, GDP grew up 4.1%. The markets are receiving promising news like Consumer Confidence raised at 127.4 from last month 126. Also, employment is in an excellent position near its record. Redbook, retail sales, showed same stores sales are growing at 4.2% , up from last month pace 3.8%. Chicago Purchasing Manager Index 65.5 from last month 64.1. Personal Income grew 0.4% like Personal Spending up 0.4%.
The markets are ready for new earnings reports today. FOMC Meeting Announcement today at 2 P.M., Fed is expected to keep rates steady and employment figures this coming Friday.
The markets expect two more rates hike this year.

Dear traders and investors, positive news from the markets and the economy outweigh the negatives. The strong economy is decisive for the consumers and therefore for the corporations. I expect a surge in the stock market this second semester of 2017.

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