SHORT TERM: market rallies on Q2 GDP revision, DOW +213
Overnight the Asian markets were mixed, but Europe opened lower and closed +1.45%. At 8:30 the Commerce Dept. reported that the revised Q2 GDP has been raised from 1.9% to 3.3%, due to strength in exports and a larger inventory buildup. The details of the report were not at all that encouraging. The weekly unemployment report showed first time claims dipped 10K to 425K. The market rallied on the news. At the open the SPX gapped up slightly to 1286. Then after breaking through the 1287 pivot continued higher, in a choppy fashion, to the recent highs of 1293 by 11:00. After a small pullback the rally continued, breaking through 1293, and then chopping its way higher right into the close to reach 1301. At the close the SPX/DOW were +1.65%, and the NDX/NAZ were +1.00%. Bonds lost one tick, Crude dropped $2.50, Gold gained $5.50, and the Euro was lower. Support for the SPX now notches up to 1287 and then 1261, with resistance at 1316 and then 1327. Short term momentum was extremely overbought at the close. The near term indicators are also getting overbought as well. Tomorrow the PCE will be reported at 8:30, with the Chicago PMI and Consumer sentiment at 10:00. After holding support at 1261 this month, and the break through 1293 today, this uptrend continues to stay alive. Best to your trading!
MEDIUM TERM: uptrend high SPX 1313 may be tested
LONG TERM: bear market