1:15pm (EST)
The bears are looking for their fifth-straight win as the bulls continue to search for good news. Futures were slightly lower heading into the opening bell after 3Q GDP (Gross Domestic Product) numbers came in lower-than-expected. Real GDP was 2% for the quarter versus estimates for 2.5% but still showed growth from the prior quarter. Elsewhere, Personal Consumption rose 2.3% which was just short of an expected increase of 2.4%.
The bulls did manage a push into positive territory shortly after the session started but failed to keep their upward momentum. Although they have managed to stay close to breakeven and Tech is showing strength, the bears are also having trouble breaking key support levels so today could end in a draw.
The Dow is currently down 15 points to 11,531 after touching a low of 11,434 but has held 11,400.
The S&P 500 is declining 2 points to 1,191 after testing a low 1,181. Support is at 1,175 and then 1,150 but the bulls will be desperate to get back above 1,200 on the close today.
The Nasdaq is up a point to 2,525 after kissing a low of 2,499.19.
The IMF (International Monetary Fund) is trying to tease the market and could provide liquidity to Europe’s woes and while the news could be good, it may not be enough to solve their credit crisis which is reaching a crucial point if they don’t do something soon.
We will be back in the morning with a fresh update and there is a bevy of economic news due out before the open. The MBA Mortgage Index is due out at 7am (EST). Initial Claims and Continuing Claims are due out at 8:30am along with Personal Spending and Income. Personal Income/ Consumption numbers and Durable Orders will also be released an hour before the bell. After the open, Wall Street will get the final Michigan Sentiment report and the weekly update on Crude Inventories.
The charts are telling us a huge move is coming over the next few weeks and while it is still a little uncertain which way the markets breaks, there seems to be too many people taking the short side. While there appears to be plenty of gloom-and-doom to go around, it can sometimes pay to take a contrarian view.
Subscribers, check the Members Area for the latest trade updates. We may issue a Weekly Wrap trade today so stay alert for those of you who are subscribers. We may have 2 new trades and 2 active trades we need to take action on.