Mid-session market 01/26: Q4 GDP higher than forecast, economic data temporarily improves

The market opened Thursday's trading session with significantly improved sentiment as VIX returned below 20 and SPY pushed to 404. However, selling pressure and profit-taking appeared right after 10 minutes of opening, gradually pulling the market down and pushing SPY to key gamma level 400 before finding support and starting to stabilize upwards again. This is a significant shift in market sentiment trend since last week's CPI report; good economic news is also good news for the market, instead of fearing that economic growth will accelerate the FED's rate hike process.

Looking at core GDP components, the main growth comes from inventory buildup in industrial production and service consumption while real estate investment continues to decline.