Articles:
US returns to growth with 3.5% rise in Q3 GDP (FTAlphaville)
U.S. Economy: Consumers, Government Propel Growth (Bloomberg)
Dow's Gain: 199.89 as GDP Wows Wall Street (TheStreet.com)
Recession over? GDP grows 3.5% (PhoenixBusinessJournal)
Wall Street rallies on better-than-expected GDP report (Xinhua)
As U.S. GDP Improves, Investors Shift Interest Back to Higher Yielding Assets (ForexHound)
The result for UUP (US Dollar) and SPY (S&P) was a bounce off of the 50 day moving average and minor uptrend/downtrend, support/resistance levels. $UUP hasn't hit the 50dma directly yet. Volume recently favors red on SPY and black on UUP but I'd wait to see what happens with the trend and 50 day moving average. $SPY RSI is at 50.32 and has been trending lower. $UUP RSI is trending higher but still below the mid level at 47.51. $UUP had some MAJOR volume the past few days and in the options. So there's still indecisive action that needs to be confirmed in order to play ride a long breakout/down (imho). You can't fight a channel or trend... We'll see.
Looking at my previous posts on $IYT (transports) and $IWM (small caps + option activity), they are still weak. At today's close, IYT is well under the 50dma with relative strength at 37.92 and IWM is well under the 50dma with relative strength at 40.39. Obviously this is a traders market for those who have already flipped their longs from the March lows, up 60% from 66.31 to 106.65 today. It is also interesting that $QQQQ (tech) is testing just above the 50dma with RSI at 47.89. I want to see leadership from a sector. For now I'd say IWM, IYT could retest resistance/50dma but if those roll over again it could drag SPY and QQQQ down with them. We are also between the 38.2% and 50% retracement from 2007 highs and 2009 lows. You can't fight leadership though, even if it's liquidity imo. You should probably look at breadth indicators as well. Watching everything.....
6 Month $UUP (USD) (Courtesty of Stockcharts.com)
