U.S. stocks on Thursday were on track to end a volatile trading session higher, helped by gains in technology and energy names. After seesawing through the day, Wall Street's major indices moved decidedly up late in the day ahead of more economic data on inflation. Meanwhile, chip giant NVIDIA surged after its quarterly results.
Concerns around the future of the Fed's path on rate hikes have weighed on the major averages this week. However, Thursday's late-session push has helped the S&P 500 and has put it on track to snap a four-day losing streak.
The economic calendar was in focus on Thursday. The second estimate of U.S. GDP in the fourth quarter was revised downward to +2.7%, compared to the anticipated +2.9% figure.
Chart: SPX daily and Weekly Chart
From the SPX daily chart, as we expected yesterday, "if 3970ish level can be held, then 3970-4030 might be the zoom for day play." Which gave a hammer doji on daily chart, and pulling 8 EMA down towards market price. IF the market closes above 4050ish this week, then on the weekly chart, it will give quite a positive sign for tech buyers.
Chart: SPX 15 mins and 1 hr Chart
The downward revision to GDP growth is a bit of a surprise ... The monthly breakdown of the data will be be published tomorrow, along with the January data; for now, all we know is that all three components - durable goods, nondurable goods, and services - were revised up. That doesn’t look good, though the new data don’t necessarily have anything to say about what will happen in the future.
And as I said, I think most negative factors are already priced in the market.
Therefore, the market may have further short-term shocks, but the market upward trend will not change. I am expecting the SPX to find support somewhere around 4000ish, and close above 4040ish. But if the market fails to close above 4040ish and also closes below 4000ish, it will make the market look very negative.
Please feel free to express your ideas and thoughts in the comment section.
Concerns around the future of the Fed's path on rate hikes have weighed on the major averages this week. However, Thursday's late-session push has helped the S&P 500 and has put it on track to snap a four-day losing streak.
The economic calendar was in focus on Thursday. The second estimate of U.S. GDP in the fourth quarter was revised downward to +2.7%, compared to the anticipated +2.9% figure.
From the SPX daily chart, as we expected yesterday, "if 3970ish level can be held, then 3970-4030 might be the zoom for day play." Which gave a hammer doji on daily chart, and pulling 8 EMA down towards market price. IF the market closes above 4050ish this week, then on the weekly chart, it will give quite a positive sign for tech buyers.
The downward revision to GDP growth is a bit of a surprise ... The monthly breakdown of the data will be be published tomorrow, along with the January data; for now, all we know is that all three components - durable goods, nondurable goods, and services - were revised up. That doesn’t look good, though the new data don’t necessarily have anything to say about what will happen in the future.
And as I said, I think most negative factors are already priced in the market.
Therefore, the market may have further short-term shocks, but the market upward trend will not change. I am expecting the SPX to find support somewhere around 4000ish, and close above 4040ish. But if the market fails to close above 4040ish and also closes below 4000ish, it will make the market look very negative.
Please feel free to express your ideas and thoughts in the comment section.
