Fourth Quarter GDP Falls Less Than Expected 5.5% To 3.8%...We Still Contracted!

Good Morning! If you didn't watch last night's trading video I suggest you do so first! As you probably already heard, GDP for the fourth quarter fell 3.8% which was ironically enough BETTER than the expected 5.5% by economists. As such, futures are pointing slightly higher. But the fact remains that we shrank! We didn't expand and we sure didn't shrink just a little bit; we are falling off the edge very fast here. Still, it's always up to the markets (which usually look ahead not behind) to determine where we are going next. Since I started trading, I've always found that because the markets are pricing in the road ahead not the one behind, usually when we start getting the worst news is when things begin to turn around. I'm not saying that this will happen overnight and we will rally from here, but when everyone thinks we are headed down is just when we start to rally big! As promised, here are the S&P support and resistance targets. As a note, we need to hold the 835 level if we see any sell off today. If we break that then we are headed to 800 fairly fast. Happy Trading!