📉US500 tumbles 2.0% after GDP revision💥

Major Wall Street indices fell sharply at the beginning of today's session as fresh data from the US sparked additional concerns that the Federal Reserve will maintain its aggressive rhetoric for longer than expected. Dow Jones is losing nearly 1.20%, the S&P 500 falling and the Nasdaq fell 1.56 and 2.10% respectively as the final estimate for GDP growth showed the US economy expanded 3.2% in Q3, higher than 2.9% in the second release. At the same time, the weekly jobless claims data points that the labor market is still in good condition, which coupled with upbeat GDP data, strengthens the case for the Fed to continue to raise interest rates and eventually resort to more aggressive policy especially. Following the release of today's data the dollar strengthened while equities erased most of yesterday's gains. It is worth remembering that the PCE inflation reading will be published tomorrow and the market expects that price pressure will ease significantly. However, given today's figures, Friday's report may also turn out to be a disappointment, which would only provide more fuel for market bears.

US500 pulled back sharply as buyers again failed to break above 100 EMA (purple line). If current sentiment prevails, nearest support to watch is located at 3800 pts and coincides with 38.2% Fibonacci retracement of the upward wave launched in March 2020. If bears manage to push price below this level, downward move may accrete towards 3600 pts mark or even October lows at 3500 pts. Source: xStation5