SHORT TERM: stocks gap down DOW -100 at opening, then turn mixed
Overnight the Asian markets were all higher following the rallies in Europe and the US. Europe came in about 0.10% higher as wednesday’s surge began to lose some steam. At 8:30 Q2 GDP was revised upward to 4.0% verses a less than 1% growth rate in Q1. Q3 will obviously be much below this level, as the economy has become just as volatile as the stock market. At the opening stocks gapped down as the DOW dropped 100 points in the first few minutes, and the SPX hit 1451. A rally in the tech stocks stabilized the market as the NDX reversed an opening 14 point loss, into a 14 point gain. Bonds are up 1/4 point, Crude is 15 cents higher, Gold off $3.00, and the Euro is lower. After hitting 1451 within the first few minutes this morning, the SPX has rallied back near the 1462 pivot. This level should again offer resistance, and if breached 1484 would be next. Support remains at 1438 and then 1410. Short term momentum was overbought and is now heading lower. This market remains volatile and the techs continue to cushion the cyclical decline, for now. Best to your trading!
MEDIUM TERM: correction
LONG TERM: bullish.