SHORT TERM: stocks open lower on weak GDP report, but turn mixed.
Overnight the Asian markets were all lower with Australia’s ASX and India’s BSE taking the biggest drops: about 1+%. Europe came in lower as well, down 0.60%. Our stock index futures headed lower after Q1 GDP was reported under expectations at 1.3%. This is subject to revisions of course. Core inflation for the first quarter rose at a 2.2% rate. The market opened lower making a low within the first 15 minutes. As the market bounced off this low, the NAZ eked out a new bull market high. Bonds are flat, Crude is down 20 cents, Gold is rallying +$3.00, and the Euro just made a record high verses the Dollar at 136.80. Short term momentum is around neutral, backing off from the overbought levels of the past few days. It is possible the SPX just completed Nano wave 3 as noted on the charts below. But this is not confirmed by the other indices yet. Let’s see what unfolds today. Next week we have a slew of economic data including; Core PCE, ISM, ISM services, Auto sales and Non-farm payrolls. Could be a choppy week. Best to your trading!
MEDIUM TERM: bullish
LONG TERM: bullish.