Stock market is expected to open lower after hopium rally as if fiscal cliff was fixed. There is lot of differences between Democrats and Republican and nothing is solved. Check the tweet from Boehner https://twitter.com/SpeakerBoehner But, Algos go by headline and not reality. WSJ Hilsenrath article caused additional rally in last hour with its headline, "Fed likely to continue QE in 2013" Algos only read key word and it got everything needed for rally.
Tomorrow, US GDP will be out at 8.30 am and the expectation is 2.8% which is jump from 2% previous month and its way to high. Since election is over expect GDP will come to reality. A GDP of 2.8% removes hope of easing which will cause sell off but a GDP of 2% would mean stock will be flat or higher on the hope of easing. Between 2 to 2.8% stock market will be flat. Jobless claim is expected to show 390k. Since election is over, expect it to also rise above 400k. Every week jobless claim is revised higher. For bullish sentiment to continue, Dow jones need to break 13042 resistance and S&P500 needs to break 1414. For bearish sentiment to continue, Dow jones need to break 12944 and S&P500 need to break 1395.
Tip of the day - Don't try to chase a stock you'll lose money. Make you plan of entry and exit point and stick to it.
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| S&P500 is expected to open lower tomorrow |
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| Dow jones expected to open lower tomorrow. |
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| Long term downtrend still intact. |
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