administrator Site Admin
Joined: 28 Dec 2005 Posts: 11986
|
Posted: Sun Apr 29, 2007 2:02 am Post subject: Slower Growth & Higher Inflation |
|
|
On Friday, first quarter real GDP was reported at 1.3%, the GDP Price Deflator increased 4.0%, and Personal Consumption Expenditures rose 3.4%. So, economic growth slowed substantially, while inflation rose to higher levels. However, last year, the stock market failed to discount rising odds of a recession. It seems, too many investors expected a market correction. So, the market rose. The CBOE Put/Call (CPC) has been in uncharted territory and remains at high levels. Currently, the CPC 200-day MA is 0.96 and the 50-day MA is 1.07. However, Friday's economic reports cannot be ignored. Consequently, greater uncertainty may spark selling and volatility next week. SPX short-term support is roughly 1,470 (minor congestion area) and roughly 1,440 (50-day MA).
|
|