Mid-Session Market Comment 03-27-14

 Major U.S. market index fell this morning,  then bounced, and they are now trading mixed. Fourth quarter GDP came in +2.6% better than the last estimate of  2.4 percent  and  the reduction of initial jobless claims both serve to stabilize stock market. Technically, the Nasdaq Composite and Russell 2000 have both dropped below their 50-day moving averages yesterday, their trends have turned down . However, the two indices have fallen five days in a row, and are oversold. After dropping to near their 100-day moving averages this morning ,they are now bouncing off those levels. A short term oversold bounce for the market is likely.  The Nasdaq may go back up to test its 50 day moving average at 4223 before coming back down again. S & P 500 fell below 1850 support this morning and has since recovered above it. This should also helping the rebound. The Dow is up now and have been the strongest among indexes lately. It's trend is still up. Social Media sector (SOCL)should lead the bounce.