The markets reversed substantially today after a massive gap higher. This is a key reversal because volume is extremely strong. The SPDR S&P 500 ETF (NYSE:SPY) ran higher to $115.79 after economic news came out better than expected at 8:30am ET. Jobless Claims cam in at 453,00, slightly better than expected. In addition, the third estimate of GDP came in at 1.7% which was also better than the 1.6% analysts had expected. This caused a solid gap higher above the master level on the SPY of $114.85 – $115.04. The markets rallied higher and at 9:45am ET, Chicago PMI was released. This economic breaking news also was much better better than expected, coming in at 60.4. Last month, it was 56. On this news, the market ripped even higher, hitting the highs of the day at $115.79. No sooner did the pop occur, the market began to reverse.
Always remember, the market reverses and tops out on the best news and bottoms on the worst. The Dollar has also surged higher, the PowerShares DB US Dollar Index Bullish (NYSE:UUP) was lower early keeping the markets up. The UUP is now higher by $0.03 to $22.87. The markets are at the lows of the day now, with the SPY hitting $113.81. Major calls were made in the Research Center for a major day, key move day.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
