US OPEN: Wall Street subdued after yesterday's rebound

• US stocks mixed
• US GDP revised higher
• Tesla (TSLA.US) stock price rises following Musk comments

US indices launched today's session in mixed moods as volatility subsided in thin trading ahead of the holidays. Investors have been grappling with fears of the fast-spreading omicron variant and the US spending bill. President Biden reiterated on Tuesday that the government will not bring back strict lockdowns and that it will purchase 500 million at-home Covid tests that will be free to Americans. Meanwhile, the US Army said that it is confident it has developed a vaccine that will be effective against all coronavirus variants. The US military worked on the vaccine for 2 years and the vaccine has different features than currently available products. On the fiscal policy front, President Biden said that he and Senator Joe Manchin were “going to get something done” on the $2 trillion Build Back Better social policy bill. On the data front, GDP data showed the US economy expanded by an annualized 2.3% in the third quarter, above second estimates of 2.1%.

US2000 - sellers failed to break below major support at 2100 pts at the beginning of the week and index rose sharply during yesterday’s session. However at the moment buyers struggle to break above the downward trendline which coincides with EMA 100 (purple line). As long as the price sits below, another downward move towards aforementioned support could be launched. On the other hand, should a break higher occur, upward move may accelerate towards resistance at 2240 prs which is strengthened by 61.8% Fibonacci retracement of the last upward wave launched in August 2021. Source: xStation5

Company news:

Tesla (TSLA.US) stock jumped over 3.0% before the opening bell after CEO Elon Musk confirmed that he now sold enough stock to reach his goal of selling 10% of his shares. Over that time, however, Musk has actually increased his holdings in Tesla due to the exercising of options. Meanwhile US auto safety regulators have opened a formal safety investigation into 580,000 cars over the automaker's decision to allow games to be played on the front center touchscreen.

Tesla (TSLA.US) stock has been under pressure in recent weeks, however it seems that buyers manage to halt declines around major support around $900.00 which is marked with lower limit of the 1:1 structure and 50% Fibonacci retracement of the last upward wave. If current sentiment prevails, the next target for bulls is located at the psychological $1000.00 level. On the other hand, should break lower occur, then downward move may accelerate towards next support at $815.00 which coincides with 61.8% Fibonacci retracement. Source: xStation5

Alibaba (BABA.US) stock plunged 4% in the premarket after Atlantic Equities downgraded the Chinese e-commerce giant to “neutral” from “overweight” due to concerns that Alibaba shopping platforms Tmall and Taobao won’t see improvement in their performances in the near term.

CarMax (KMX.US) shares jumped more than 3.0% in the premarket after the used-car retailer recorded upbeat quarterly figures as a long waiting period for new cars, fueled by shortage of chips, kept driving consumers to company salons and website.

Kellogg (K.US) stock rose 0.6% in premarket after the cereal-maker ended a nearly 3-month strike and workers ratified the deal, which translates into higher wages and better benefits.