GDP/Claims Today / Approaching Major Congestion

Has nothing to do with stocks, but it is the coolest animal video I have ever seen:

[youtube:http://www.youtube.com/watch?v=LU8DDYz68kM 450 300]

A few things. Don’t forget about GDP and Jobless claims coming out today at 8:30AM EST. The GDP consensus is -6.6% with a range of -6.9 to -6.2. The previous reading was -6.2%. Claims are expected to come in at 650K with a range of 640K to 670K. The previous reading was 656K. There will definitely be some movement today.

As for the market, there are a few things to point out. First, the COMP is above the 100-day MA, something it wasn’t able to accomplish since August 2008. The DJIA and SPX are not there yet. The WTF pattern, which allowed the market to bounce, occurred at the bottom end of the up channel, 3PM as usual. Beyond SPX 800 lies major congestion which is the area where we consolidated for a month before the major gap down.

On the 6-month SPX chart, obviously there are a lot of lines. This may indicate that the market may be boxed in. There are more support and resistance areas than usual. Immediate primary support is at 800 and immediate primary resistance is at 825. The secondary support level is at the 50-day MA or the upper boundary of the bullish broadening wedge, around 790-795. Secondary resistance is at the 100-day MA (for the SPX) at 840 and then the upper long-term channel at 850. Those are the levels to be watching.