Stocks have opened largely flat following release of the U.S. Q1 Annualized GDP figure. GDP hit its mark at 3.1%, reassuring skeptics that the U.S. economy has continued to grow at a formidable rate. The result has been a muted Wall Street open with the DJIA DOW (+24), S&P 500 SPX (+13), and NASDAQ (+52) trading sideways through the first 30 minutes of action.

Much is being made in the financial media about this weekend’s G20 Summit and the potential for a Trump/Xi trade war breakthrough. Whether or not that occurs is anyone’s guess; however, this morning’s GDP figures came in right on schedule:

Event                                                                       Actual    Projected     Previous

Core Personal Consumption (QoQ, Q1)              1.2%           1.0%               1.0%

GDP Annualized (QoQ, Q1)                                   3.1%           3.1%                3.1%

GDP Domestic Price Index (Q1)                           0.6%            0.8%               0.5%

If nothing else, today’s group of stats should go a long way to reassuring investors in the viability of the U.S. economy. Consumption is up modestly and GDP remains solid. All in all, this was a positive release in that it did not spur more talk of recession.

Solid GDP Report Spurs S&P 500 Futures

Following back-to-back losing sessions, price action is on the bull for September E-mini S&P 500 futures. Bids are hitting the market, driving prices toward the daily Double Top area.

Bottom Line: As we roll toward the weekly close, the S&P 500 appears poised for a rally. With GDP being a non-factor, a test of the daily Double Top pattern (2967.75-2969.25) may be in the offing.

Until elected, I will have sell orders queued up in the September E-mini S&Ps from 2965.25. With an initial stop at 2970.75, this trade produces 22 ticks profit on a 1:1 risk vs reward management plan.