Grim U.S. GDP Data May Trigger Reversal In Stocks – Silver Doctors


The essential GDP launch was a lot worse than anticipated. Nevertheless, we may even see a…

by Paul Rejczak by way of Sunshine Income

The S&P 500 index barely prolonged its downtrend yesterday, however on the finish of the day it was greater. So was it a reversal or simply one other short-term bounce?

The broad inventory market index gained 0.21% on Wednesday, after bouncing from the brand new native low of 4,162.90. The S&P 500 fell to its March native lows of round 4,160. It prolonged the downtrend regardless of quarterly company earnings releases. There’s nonetheless a whole lot of uncertainty regarding the Fed’s financial coverage tightening fears and Ukraine battle. This morning the S&P 500 index is anticipated to open 1.1% greater following yesterday’s FB quarterly earnings launch. Nevertheless, the market retraced a few of its in a single day advance after a lot worse than anticipated quarterly Advance GDP information launch (-1.4% vs. expectations of +1.1%).

The closest essential resistance degree is now at round 4,200-4,250. Alternatively, the assist degree is at 4,100-4,150, marked by the earlier lows. The S&P 500 index retraced the entire March advance, as we will see on the every day chart (chart by courtesy of http://stockcharts.com):

Futures Contract Above 4,200 Once more

Let’s check out the hourly chart of the S&P 500 futures contract. On Tuesday the market fell to its earlier native lows of round 4,140, and yesterday it bounced again above the 4,200 degree once more.

The market is technically oversold and there are some constructive development exhaustion indicators. Due to this fact, we predict an upward correction from the present ranges (our premium Inventory Buying and selling Alert consists of particulars of our buying and selling positions together with the stop-loss and revenue goal ranges). (chart by courtesy of http://tradingview.com):

Conclusion

On Wednesday, the S&P 500 index fluctuated following its latest declines. The market closed greater, however it was nonetheless beneath the 4,200 degree. In the present day, the essential Advance GDP launch was a lot worse than anticipated. Nevertheless, we may even see a “promote the rumor, purchase the information” motion right here. Traders will even await at the moment’s essential quarterly earnings releases from AAPL and AMZN.

Right here’s the breakdown:

  • The S&P 500 index remained beneath the 4,200 degree yesterday; it could be counterintuitive, however at the moment’s worse than anticipated Advance GDP launch might set off an upward reversal.
  • We predict an upward correction from the present ranges.

In the present day’s premium Inventory Buying and selling Alert consists of particulars of our buying and selling place. Fascinated about extra unique updates? Be a part of our premium Inventory Buying and selling Alerts e-newsletter and browse all the small print at the moment.

Thanks.

Paul Rejczak,
Inventory Buying and selling Strategist
Sunshine Income: Efficient Investments via Diligence and Care



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