GDP, Durable Goods and the Correction

Good Q4 GDP report with the consumption of Durable Goods still at respectable levels of growth but slowing down. In fact the annual rate of growth for December is significantly lower than the quarterly average. The behavior during the previous expansion suggests rates of growth will slowdown further.

Meanwhile, the stock market seems to have started an intermediate term correction (7-10%). The tapering is finally weighing in. Longer term support is at 1700 SPX: