Technicals Leaning

DJ Resistance:  26,824.78  All-time high
                           26,616.71  Old all-time high (January peak)
                           26,000       Strong
                           25,835.35  February high
                           25,798       50 Days moving average
                           25,732
                           25,717       20 Days moving average
                           24,992       200 Days moving average
                           24,876       2017 peak
                           24,719       2017 close

DJ Support:      24,533.19  Wednesday's low
                           24,000
                           23,500
                           23,250
                           23,173       Strong, upside gap
                           23,002       Strong, downside gap

Technical Analysis:
These late days have changed the trend in the charts. The short term is bearish but medium and long still are bullish with damages in the chart. S&P and DJIA have violated its 200 days moving average which is bearish.
NASDAQ Composite has done the same and it has lost more than 10%. Correction is considered when the index has lost 20% from the high of the movement, bear market is when the lost is over 20%. Right now, we can speak about a retracement. Until this moment we have not seen a capitulation then one can think that the market was overbought, there was a profit taking and buyers are expecting for opportunities to buy.
Positive trend line (watch the chart) has supported DJIA but today is the first day that the index sleeps below it. The market needs a confirmation of the positive trend line breaking.
We need to see the DJIA behavior during the next days.

Please click over the chart to enlarge it.

   
  Fundamentals:
 The market again reverses. The S&P has lost all the 2018 gains. In 15 days all those gains were wiped out . The retracement could be wealthy to adjust the prices with the new P/E.

The economy, the corporate earnings (81% of the corporate earnings per share that we have seen during this season are better than expected), employment and consumption are still positive with nice promises. The current earnings look great. Economic data doesn't show sign of pending recession, don't forget that recessions kill the bull markets.
We are witnessing a correction in a long-term bull market, almost 10 years, which has uncertainties about China, trade war, rising rates, nuclear pact with Russia, journalist Khashoggi case with Saudi Arabia and Turkey.
There is no capitulation in the market but we have to see the bottom to aspire to have a rebound toward the highs we have seen in the market.

Dear traders and investors, I am still bullish with the market but not steadfastly. It is because my analysis confirms me my expectations. Don't forget that October is very volatile and the market is superstitious due that the crashes occurred on October.

I try as always to express my analysis in the simpler way to facilitate the digestion of the traders and investors.

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

200 Days MA supported

DJ Resistance:  26,824.78  All-time high
                           26,616.71  Old-time high (January peak)
                           26,289       20 Days moving average
                           26,000       Strong
                           25,979       50 Days moving average
                           25,835.35  February high

 DJ Support:     25,835.35  February peak
                           25,732
                           25,600
                           25,119       200 Days moving average
                           24,900       October low
                           24,742
                           24,000
                           23,500
                           23,250       Very strong
                           23,173       Strong, upside gap
                           23,002       Strong, downside gap

Technical Analysis:
DJIA after have done a new historical high retraced aggressively to just the important support at 200 days moving average and then bounced up. This support is a bull-bear gauge and the bulls are winning.
October low is the three moths low and is the support now.
Next important resistance is DJ25,879 (50 days moving average).
The short-term trend is bearish but midterm is bullish. We have to pay attention to the chart damage, if the DJIA exceeds the 50 days moving average the trend will be bullish again.

Please click over the chart to enlarge it.

Fundamentals:

Earnings season is back and brought buyers generating a rebound after last week retracement. The start of earnings season was very strong.

Uncertainty is still in play due the difference between Saudi Arabia and U.S.A. caused by the killing of the journalist Jamal Khashoggi. In addition, the trade war with China brings uncertainty. In the European Union the Brexit weights with the Italian budget and the Italian bonds prices. 

The economic news is still positive and promise good results for the corporation and stronger consumption. Industrial Production rose up 0.3%. The lasts economic reports are bullish.

Last week pullback is healthy for the market and it reacted technically and positive with the new earning season. The continuing strength of the economy and the Trump tax reduction are going to impact on the corporation profits like the future stronger consumption. 

Dear traders and investors, I don't take too much of your time, my expectations are a strong economy, excellent business for the corporations, better standard of live for individuals therefore the stock market will look for new historical highs.

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

Dow Jones at New Historical High

DJ Resistance:  26,824.78  All-time High

DJ Support:      26,760       September peak
                           26,616       January peak
                           26,312       20 Days moving average
                           26,168       August peak
                           26,000       Strong
                           25,908       50 Days moving average
                           25,835.35  February high
                           25,732
                           25,600
                           25,082       200 Moving average
                           24,742
                           24,000
                           23,500       Strong
                           23,250       Very strong
                           23,173       Strong, upside gap
                           23,002       Strong, downside gap

Technical Analysis:
Dow Jones did a new all-time high and S&P is within striking distance to do the same. NASDAQ Composite is alike.
Start October, the beginning of the four quarter, shows a bullish trend looking for unknown territories. The near-term inflection point is DJ26,616 January peak. The third week September gap was filled with the DJIA rally promising new all-time highs.
DJIA 20, 50- and 200-days moving average are crossed pointing to the upside which is very bullish and they should give to DJIA good support in the case of retracement. DJIA is behaving technically. The price action is constructive.
The trend of the three benchmark is bullish.

Please click over the chart to enlarge it.

Fundamentals:
What a monthly, October, and fourth 2018 quarter start!
What we have seen these two last days is very bullish. This last up move is based in the fabulous economy. We see the historic level of employment, the growth of the economy, fantastic consumer confidence and therefore the corporate earnings with the promise for better results in the future. All these in spite of the trade war uncertainty. Thanks God the TLC was restructured and reconfirmed.
The growth of the economy is accelerating to 3.1% in 2018 after year of 1.5%. It is almost the double.
The Tax cut and deregulation taken by President Trump is rejuvenating the U.S.A. economy.
Dear traders and investors, this bull market have 12 years long, it is a record but this time the promise is "the best is yet to come".

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