GDP Higher – Futures Rally Hard

With futures powering higher into today’s GDP report, it appears that the index may see a bounce if news supports it. The trick is how long such a bounce lasts, should it happen at all.

The bearish pattern we saw in the S&P 500 earlier in the week is also now present in the Nasdaq 100, with a downside target to the 1720 area. If we see another reversal downward, that would be a next big level after round-number support at 1750.

As it happens, the S&P 500′s bearish flag has morphed into a plain-vanilla bearish price channel today between 1076 and 1096. Although we did see the S&P break support at the close yesterday, it was only by a hair. With the futures indicated higher at time of this writing, it gets the benefit of the doubt.

Nasdaq 100 (NDX)

First support is at 1777.08. First resistance is now at 1824.84–the 50-day moving average.

For the Nasdaq 100 Index Tracking Stock (QQQQ) first support is at $43.32. First resistance is at $44.89.

S&P 500 (SPX)

First support is now at 1085.89. First resistance is at 1114.56–the 50-day moving average.

For the Standard & Poor’s Depository Receipts (SPY) first support is at $108.12. First resistance is at $111.61.

Russell 2000 (RUT)

First support is now at 600. First resistance is now at 615.21–the 50-day moving average.

For the iShares Trust Russell 2000 Index Fund (IWM) first support is at $60. First resistance is at $61.56.