SHORT TERM: stocks gap up after three days of selling
Overnight the Asian markets were all higher, and again China’s SSEC posted another all time high. Europe came in 0.70% higher as well. At 8:30 the Commerce dept released the revised Q4 GDP figures, which displayed slightly stronger growth than expected at 2.5%, and 3.3% for 2006. The stock index futures rallied on the news, and Gold sold off. At the open the market gapped up higher, but immediately ran into some selling pressure. The SPX hit a high of 1426 before backing off a bit to 1423 by 10:00. With the SPX closing at the support pivot 1417 yesterday, and a gap up this morning. We should expect another run at the overhead pivot at 1431 soon. Bonds are flat, Crude is 75 cents higher, Gold $5.00 lower, and the Euro is higher. Notice that Crude and the Euro are both higher, and Gold is lower on the day. Gold may see a little downside pressure until monday, and then should resume its rally. Best to your trading!
MEDIUM TERM: bullish
LONG TERM: bullish.