SHORT TERM: stocks gap up at the open on good GDP news.
Overnight the Asian markets were all higher, and Europe came in higher as well. At 8:30 the government released the revised Q3 GDP report, raising growth from 1.6% to 2.2%, and revised the Q2 data higher to 2.6%. With these revisions, the GDP has grown at a normal 3.0% over the last 12 months. The economy apparently has not slowed down as much as everyone had thought. At the open the stock indices gapped up, and have thus far, kept right on going. At 10:00, new home sales came in lower than expected, but median prices rose. The real estate industry seems to be bottoming out, after the speculative frenzy earlier this decade.
Technically, the SPX has now rebounded into what should be resistance: the previous 4th wave, see chart below. Short term the market is now overbought on the 15min/60min charts. Lets see how this rally works itself out. Gold is down a bit this morning, Crude continues to work its way higher, and Bonds are flat. Best to your trading!
MEDIUM TERM: neutral … major indices appear to have completed uptrends
LONG TERM: bullish.