Yes you heard correctly. GDP actually fell -1% in Q1 and yet investors responded to that news by running stocks to new highs at 1920.
The reason it was so easily dismissed is because the market is forward looking. So this is discarded as “old news” . Looking ahead investors expect a +3% showing for GDP in Q2. So that is why the bull continues its stampede.
The chartists in house are saying there is an important Fibonacci extension level at 1921 that will serve as stubborn resistance. That may create a temporary pause, but the long term bull market is in place til proven otherwise. So best saddle up and ride it out.
Steve Reitmeister ( aka Reity…pronounced “Righty” )
Executive Vice President
Zacks Investment Research