S&P 500 defended my 3,955 level by stopping full 10 pts above it and turning up swiftly. The rise was accompanied by good breadth, and ducks lined in a row when it comes to former laggards (tech), high betas incl. financials and just broadly speaking value stocks, and small caps with the dollar remaining tame. Bonds also didn‘t present any red flags.

And with TSLA earnings really good yesterday, then GDP not decelerating nearly as fast enough as anticipated, PCE prices advancing and the GDP deflator coming above expectations, the table is set for the Fed to miss a good tightening opportunity next week as durable goods data also attests to (which the markets would just love to see short-term) – compare against the following summary dating back to before today‘s data batch became available.

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Let‘s move right into the charts (all courtesy of www.stockcharts.com).
 

S&P 500 and Nasdaq Outlook

S&P 500 moved out of the hot water, and the bear market rally can continue. 4,040 is to get in the rearview mirror on today‘s close, and I would be eyeing the 4,080 – 4,085 area as the nearest solid resistance target (ultimately followed by my 4,130 of September CPI fame).
 

Credit Markets

No warning signs here, and the still reasonably fine real economy data of today, should help bonds to clinch a risk-on close. HYG is to outperform TLT today – and the most sensitive real assets will like it!

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