Friday, July 30, 2010

S&P 500 ~ Pre-GDP Warm-Up 30 July 2010

Edit 8.40 am: The ES just hit 1084. If we don't get a bounce here the ES will sell off to 1070 imo

Today is the last trading day of July and it could be a very interesting one. The GDP will be announced in about one hour which should move the market quite a bit.

The diagonal target (1084) I had for the ES was almost reached yesterday (1089) and then when GS started to rally the market recovered and the SPX closed above 1100 at 1101.53. Interestingly, the last time GS had such a big EOD rally the market collapsed the day after 3 % (July 16th).

I still like ES 1084 as a first target, if that's breached though I expect a sell off to SPX 1070 to close the gap there. In this area is also the downtrend line so I expect the bulls to show up there.

As you can see I think the market will sell off after the GDP but that's just my guess, so if the market rallies above SPX 1108 again I think the SPX is going for at least 1120 again.

I hope we'll see some fireworks today ; D