Stock Markets Analysis and Opinion

Grim GDP Data May Trigger Reversal In Stocks

2022.04.28 17:26

The S&P 500 slightly extended its downtrend yesterday, but at the end of the day it was higher. So was it a reversal or just another short-term bounce?

The broad stock market index gained 0.21% on Wednesday, after bouncing from the new local low of 4,162.90. The S&P 500 fell to its March local lows of around 4,160. It extended the downtrend despite quarterly corporate earnings releases. There’s still a lot of uncertainty concerning the Fed’s monetary policy tightening fears and the Ukraine conflict. This morning, the S&P 500 index is has gained since the open following yesterday’s Meta Platforms (NASDAQ:FB) quarterly earnings release. However, the market retraced some of its overnight advance after much worse-than-expected quarterly Advance GDP data release (-1.4% vs. expectations of +1.1%).

The nearest important resistance level is now at around 4,200-4,250. On the other hand, the support level is at 4,100-4,150, marked by the previous lows. The S&P 500 index retraced the whole March advance, as we can see on the daily chart

Grim GDP Data May Trigger Reversal In StocksS&P 500 Daily Chart.

Futures Contract Above 4,200 Again

Let’s take a look at the hourly chart of the S&P 500 futures contract. On Tuesday the market fell to its previous local lows of around 4,140, and yesterday it bounced back above the 4,200 level again.

The market is technically oversold and there are some positive trend exhaustion signals. Therefore, we are expecting an upward correction from the current levels (our premium Stock Trading Alert includes details of our trading positions along with the stop-loss and profit target levels).

Conclusion

On Wednesday, the S&P 500 index fluctuated following its recent declines. The market closed higher, but it was still below the 4,200 level. Today, the important Advance GDP release was much worse than expected. However, we may see a “sell the rumor, buy the news” action here. Investors will also wait for today’s important quarterly earnings releases from AAPL and AMZN.

Here’s the breakdown:

  • The S&P 500 index remained below the 4,200 level yesterday; it may be counterintuitive, but today’s worse than expected Advance GDP release may trigger an upward reversal.
  • We are expecting an upward correction from the current levels.

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 81,727.90 2.67%
ethereum
Ethereum (ETH) $ 1,885.72 1.02%
tether
Tether (USDT) $ 0.999983 0.00%
xrp
XRP (XRP) $ 2.27 0.73%
bnb
BNB (BNB) $ 583.28 1.70%
solana
Solana (SOL) $ 124.96 1.32%
usd-coin
USDC (USDC) $ 1.00 0.00%
cardano
Cardano (ADA) $ 0.703929 4.33%
dogecoin
Dogecoin (DOGE) $ 0.167512 2.56%
tron
TRON (TRX) $ 0.225318 1.27%
staked-ether
Lido Staked Ether (STETH) $ 1,883.08 1.08%
lombard-staked-btc
Lombard Staked BTC (LBTC) $ 82,872.20 0.10%
pi-network
Pi Network (PI) $ 1.67 2.59%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 81,601.86 2.57%
leo-token
LEO Token (LEO) $ 9.71 0.01%
chainlink
Chainlink (LINK) $ 13.21 1.65%
stellar
Stellar (XLM) $ 0.273764 3.58%
usds
USDS (USDS) $ 1.00 0.05%
hedera-hashgraph
Hedera (HBAR) $ 0.188588 5.52%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,253.28 1.23%
avalanche-2
Avalanche (AVAX) $ 18.70 1.98%
shiba-inu
Shiba Inu (SHIB) $ 0.000012 1.25%
the-open-network
Toncoin (TON) $ 2.81 2.63%
sui
Sui (SUI) $ 2.19 4.74%
litecoin
Litecoin (LTC) $ 88.93 2.57%
bitcoin-cash
Bitcoin Cash (BCH) $ 327.81 7.07%
mantra-dao
MANTRA (OM) $ 6.33 2.41%
polkadot
Polkadot (DOT) $ 4.03 0.41%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.02%
weth
WETH (WETH) $ 1,886.70 1.13%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 0.999715 0.11%
bitget-token
Bitget Token (BGB) $ 4.20 0.56%
hyperliquid
Hyperliquid (HYPE) $ 12.74 4.50%
whitebit
WhiteBIT Coin (WBT) $ 28.18 1.82%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,003.70 1.16%
monero
Monero (XMR) $ 207.53 1.16%
uniswap
Uniswap (UNI) $ 5.92 0.33%
susds
sUSDS (SUSDS) $ 1.04 0.10%
dai
Dai (DAI) $ 0.999932 0.01%
near
NEAR Protocol (NEAR) $ 2.61 0.21%
aptos
Aptos (APT) $ 5.15 0.65%
pepe
Pepe (PEPE) $ 0.000007 3.35%
ethereum-classic
Ethereum Classic (ETC) $ 17.91 0.09%
internet-computer
Internet Computer (ICP) $ 5.48 0.28%
ondo-finance
Ondo (ONDO) $ 0.834453 4.90%
gatechain-token
Gate (GT) $ 20.33 0.78%
okb
OKB (OKB) $ 41.69 0.12%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 81,723.90 2.78%
aave
Aave (AAVE) $ 164.80 5.32%
mantle
Mantle (MNT) $ 0.722354 4.04%