Weekly S&P Report

E Mini S&P settles 1098.25 up 1.25

Stock futures edged slightly higher today

as reports showed the U.S. economy

slowed in the second quarter as a scarcity

of jobs eroded consumer spending, leaving

the rebound dependent on a surge in business

development. Gross domestic product grew at

a 2.4 percent annual pace, less than forecast, after

a 3.7 percent first quarter gain that was larger than

previously estimated. Other reports showed

business activity unexpectedly accelerated in July

and consumer sentiment fell less than projected.

Stocks fluctuated between gains and losses as the

Reports on confidence and on activity by Chicago

Area business managers eased concern the economic

Rebound was losing steam.

The median forecast for Q2 GDP was for a 2.6 percent

Increase. Estimates ranged from gains of one to four

Percent.

The institute of Supply Management-Chicago Inc’s

Business barometer rose to 62.3 this month, exceeding

The Street’s projection that the reading would fall to 56.

The June reading was 59.1 and figures greater than 50

Signal expansion. The University of Michigan final index

Of consumer sentiment declined to 67.8 this month from 76

In June.

Consumer Spending, which accounts for about 70 percent of the

Economy, rose at 1.6 percent pace last quarter, compared with

1.9 percent rate the previous three months that was smaller

Than previously estimated, today’s report showed. Job gains

Have been slow to take hold, curbing household purchases.

The trade gap in the second quarter widened to 425.9 billion

From 338.4 billion, subtracting 2.8 percentage points from

Growth, the biggest reduction since 1982, today’s report showed.

Imports grew at a 29 percent pace, while exports climbed ten

Percent.

The Federal Reserve’s preferred price gauge, which is tied to

Consumer spending and strips out food and energy costs, rose

At a 1.1 percent annual pace after an upwardly revised 1.2 percent

Rate in the first quarter, today’s report showed. The revision may

Help ease concern over deflation, or a projected drop in prices.

The GDP report also showed home construction rebounded from

A weather depressed first quarter as a government tax credit spurred

Sales. Inventories grew at a faster pace, adding a percentage point to

Growth, and government spending accelerated.

Obviously the question is what will this data mean for the S&P and Dow

as we move forward. For July it was the Dow Jones best month in a year

rising seven percent. The S&P for the month was up 6.88 percent. 

Throughout the day, investors weighed better than expected readings on

Consumer sentiment and manufacturing against a weak GDP. As long as

Earnings stay somewhat strong, I expect this market to challenge the 1110-

1113 area first, a close above and 1120 is next. Stronger resistance is seen

at 1135.  Support is first seen at the 1083 area.  A close under and 1064 could

be next. Regardless of market direction in the beginning of next week, investors

will be evening up going into the unemployment report that will be released next

Friday. Please call me for intraday reports sent to your email. I can be reached at

slusk@pfgbest.com or 877 294 7757.

Daily Swing #s 8/2  ESU0

Resistance#2-1115.00

Resistance#1-1106.50

Pivot                  1095.00

Support#1-      1086.50

Support#2-      1075.00

Weekly Swing #s 8/2-8/6  ESU0

Resistance#2-1135.25

Resistance#1-1116.50

Pivot                  1100.00

Support#1-      1081.25

Support#2-      1064.75

Daily Swing #s YMU0  8/2

Resistance#2-10561

Resistance#1-10488

Pivot                  10387

Support#1       10314

Support#2       10213

Weekly Swing #s YMU0  8/2-8/6

Resistance#2-10665

Resistance#1-10540

Pivot                  10413

Support#1       10288

Support#2       10161  

Sean Lusk

Senior Broker

877 294 7757

312 775 3541

312 379 5808 fax

slusk@pfgbest.com

THERE IS EXTREME RISK OF LOSS IN TRADING FUTURES, OPTIONS AND FOREX.