DOW UNDER 17,000 AGAIN

Which is not a disaster, just a slight consolidation after the last week stormy rally. DJIA is just got back below the 17,000 for the first time after the great bullish momentum. This modest drop doesn’t mean anything. The European indices dropped more and show more weakness than the Wall Street. The Euro Stoxx 600 fell to the lowest level since end of May and extending a three-day loss to 2.6%. Yesterday started the earning season in US and Alcoa, the largest aluminium producer kicked off earnings season with its report after the market closure. Due to these earning reports, the market might be much choppier.

Stocks closed broadly lower:

• Dow ends below 17,000: -0.7%
• S&P500: -0,7%
• Nasdaq: -1,4%

On technical side the condition of the market is still the same. The DJIA is still bullish the uptrend so far has not been violated, so we only have to hold our long positions. At 16,930 there is a key support level and the next resistance level is at 17,060. Between this tight range nothing will happen. We are going to react if the index index leaves this territory in any direction.

The BFM Assets Team.