26,616.71 Old all-time high
26,277 November high
26,000 December high
25,098
DJ Support: 24,992 200 Days moving average
24,876 2017 High
24,812 Gap upper side
24,719 2017 close
24,619 Gap down side
24,250
24,238 20 Days moving average
24,232 50 Days moving average
23,779
23,500
22,636
21,600
21,535
Technical Analysis:
It is difficult to read the chart because the very strong support DJ23,250 was broken then the damage in the chart is serious. The quick bounce counteracts the steep fall during December 2018.
Also, it is very positive that DJIA has slept over the DJ24,876 (2017 high) and DJ24,719 (2017 close). They became important supports now and pay attention of them because they are inflection points.
The last trimester was volatile and the downside movement faded with a supported, stable and ordered rebound.
DJIA is trying to re-establish its range.
November low DJ24,286 is an excellent support and the index has slept over it in eight consecutive sessions which is bullish in the short term or at least shows stability. Also, the 50 days moving average acts as strong support at DJ24,232.
The short-term and the intermediate-term are bullish. The November and December damages are clearly in the charts and the quick rebound neutralizes them.
Please, click over the chart to enlarge it.
Geopolitical drove the volatile markets on November and December. This last one was the worst in decades conversely January was the best in 32 years with the DJIA up 7.17%, S&P 7.87& and NASDAQ Composite 9.74%.
Fed took an accommodative stance with regards on the interest rates hike, in addition the optimism on the trade war U.S.A.-China (considerable progress, March 1st. is the deadline), excellent employment figures 304,000 new jobs and the rate at 4%, rising economy and sturdy corporate earnings should drive the markets to the upper side of the range.
We are in the meddle of earning season and the corporations, in general, are doing well.
Dear traders and investors, I am very sorry because I couldn't actualize the block due another project, I didn't have the time. I am still optimistic with the stock market but November and December correction were an excellent lesson about politics and geopolitical. As always i try to show mi analysis and conclusions in the more simpler way to simplify the understanding.
Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!
Ulises
