Good News from GDP

The revision of the GDP provided some good news for this market — since GDP stayed in positive territory even after the revision.

This morning, S&Ps are trading up 2.20 at 1165.80. On the upside, our first key level is 1168.50. If we can get above this, it will alleviate the downside pressure.

On the downside, we have 1163, which was yesterday’s low (which was taken out on Globex), then 1160.50, a key level at 1158.50 and then a critical support area at 1155.50.

Nasdaq is trading up 6.50 at 1540.50. On the support side, we have 1515-1500. Below that we have a key area of 1492 to 1485.

On the upside, we have a first area of resistance at 1535 to 1543. Above this we have 1556 to 1563.

The Dow has been in roughly a 550-point range for the past two months. We’re testing the downside of that range right now. The key number is 10,120. With a close below that, we should expect 550 points to the 9750 area. On the economic front, the GDP revision was released, from +0.7 to +0.2. The market actually took it as a bullish indication, since GDP remained in positive territory. Expectations had been for a flat to a negative number. Before this, S&Ps were trading down 2.5 and then after the report traded back to positive territory.