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Market Outlook

|Includes: EEM, IWM, SPDR S&P 500 Trust ETF (SPY)

The S&P 500 hit the important support level of 1040 yesterday and bounced back. However, today's action is a little discouraging for the bulls as the market opened up but ended in red. Dow closed below 10000. All major market segments are still stuck in down trend. Small cap IWM touched the upper range this morning but did not break out.

Tomorrow will be an important day as the Q2 GDP revision comes out. If the market can close higher, most likely a short term bottom is in. On the other hand, if 1040 is broken, all bets are off. We will see 1000 soon.

Below are 60 minute bar charts of SPY, IWM, and EEM.

Disclosure: Net short IWM, EEM