The S&P 500 added to its gains as a large batch of US economic data showed that the US economy is doing better than what economists projected.
- Annualized third-quarter US GDP rose by 2.1% as projected, but higher than 1.9% prior
- Core Durable goods orders, increased by 0.6% vs. the -0.8% expected, and -1.2% previous
- Jobless claims showed 213K people applied for unemployment benefit, which was a bit lower than the 221K projected, and 228K prior.
The combination of better data lifted the S&P 500 index higher, but the gains have been muted so far, which is understandable given that the index is up by 1.88% from the nearest low and support level, the November 20 low of 3088.2.
I suspect that traders will be hesitant to buy as the index is short-term overbought, yet this might not stop the index to slowly drift higher and reach the ascending trendline resistance at 3161.9. This trendline has, in the past marked three reversal highs since November 2018.
I suspect traders that are not already long the S&P 500 to wait for a corrective decline to the 3088 to 3117 interval before adding to their bullish exposure.
On a break to the November low of 3088.2, the short-term bullish trend would end.
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