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8/29/2012 Quarterly Prelim GDP (0230 HI time / 0830 EDT)
Forecast: 1.7%
Actual: 1.7%
Previous Revision: n/a
DULL REACTION
Started @ 95.74
1st Peak@ 95.65 – 0232 (2 min)
9 ticks
Reversal to 96.05 – 0238 (8 min)
40 ticks
Notes: Report matched the forecast, causing an initial dull reaction for a short move of only 9 ticks in 2 min. The market had been trading sideways before the report with all 3 major SMAs in a tight fist below the market action, but the short spike hit the S1 Pivot. It was unable to drop to the 50 SMA, but if it had, it would have encountered strong support and bounced sharply upward. With JOBB, your order would not have filled in the first 15 sec, so cancel the order. After the initial drop, the market reversed for 40 ticks in 6 min to hit the PP Pivot, before retreating slowly. The bulls returned after the market was relieved that the GDP reading did not disappoint. Also notice the action after the pit open resembled the action after the report broke…a small short move followed by a bigger long rebound.