Market pulls back after bad GDP report
The earnings have been the driver for this month. The earning season is almost over with few names still left to report. Once the earnings are winded down the attention will shift to the fundamentals and the economy. A bad GDP report with the US economy shrinking for the first time in 3.5 years has made the market to pull back a little throwing water at the rally. RUT is the leading index here and it turned down yesterday possibly making some kind of top.
Going in Fridays job reports barring the fact if a horrible report is not presented to the market we should still hold SPX around 1500 level. If the numbers are bad anything is game and a sell off is more likely in the cards. The next level of support in this high market is the 21 day moving average which has not caught up with the trend yet.
GOOG is still holding high around 750ish and AAPL is now forming a base around 450. These two stocks are now birds of different color even though it is the same sector. The behave differently. GOOG is the new Tech Giant and leader. It is the strongest in the whole sector.
AMZN has bad earnings and sure did sell off and now its headed to its 50 day line most likely.
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