Fourth quarter GDP declined by 0.1 percent despite expectations for a 1.1 percent increase. Investors got the jitters on Wednesday after the Bureau of Economic Analysis reported that fourth quarter GDP contracted by 0.1 percent, despite economists’ expectations that GDP increased by 1.1 percent during the fourth quarter of 2012.  Although the decline was primarily the result of a 22 percent reduction of defense spending on an annual basis, investors were concerned because it was the report of quarterly economic contraction since the second quarter of 2009. As of 2:28 EST, the Dow Jones Industrial Average declined 24 points (0.18 percent) to 13,929.  The S&P 500 Index dropped 0.21 percent to 1,504 (NYSEARCA:SPY).  As the chart (above) indicates, the S&P 500 continues to remain above its previous resistance level of 1,470. Its next overhead resistance level is in the 1,550 – 1,570 range.  Its Relative Strength Index is slightly in the “overbought” range at 71.23 (Chart courtesy of  Stockcharts.com ).  The Nasdaq Composite slipped 0.14 percent to 3,149 (NASDAQ:QQQ).  The Russell 2000 Index dropped 0.88 percent to 899 (NYSEARCA:IWM). The “Dollar Bull” Index ETF (NYSEARCA:UUP) declined 9 cents (0.40 percent) to 21.64 as of 2:55 EST. As of 2:41 EST, the S&P 500 Volatility Index – or VIX – advanced 4.13 percent to 13.86 and the VIX Short-Term Futures ETN rose 3.24 percent to 23.60 (NYSEARCA:VXX). The Euro STOXX 50 Index finished Wednesday’s trading session with a 0.62 percent decline to 2,732 – staying well above its 50-day moving average of 2,644.  After breaking above its resistance level of 2,700 on January 21, the STOXX 50 is once again attempting a sustained advance above that level, which has been a barrier since the beginning of the new year.  Its Relative Strength Index is 68.55 (NYSEARCA:FEZ).  The FTSE 100 Index declined 0.30 percent to 6,320 (NYSEARCA:EWU).  The German DAX Index dropped 0.47 percent to 7,811 (NYSEARCA:EWG).  France’s CAC 40 Index dropped 0.54 percent to 3,765 (NYSEARCA:EWQ).  Spain’s IBEX 35 Index sank 0.90 percent to 8,565 (NYSEARCA:EWP).  Italy’s FTSE MIB Index took a 3.32 percent nosedive to 17,298 as it has been overbought all month, continuously advancing, especially on those days when other European stock indices declined (NYSEARCA:EWI). As of 2:31 EST, the euro advanced 0.60 percent against the dollar, trading at $1.3573 (NYSEARCA:FXE).   Time to Hedge Euro Risk? On London’s ICE Futures Europe Exchange, March futures for Brent crude oil advanced by 69 cents (0.60 percent) to $115.05/bbl. (NYSEARCA:BNO, NYSEARCA:USO).   The Doomsayers Are Wrong About Oil Prices February Gold futures advanced by $19.80 (1.19 percent) to $1,680.60 per ounce (NYSEARCA:GLD). ETF Summary:  SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA)  -0.40%  following the disappointing fourth quarter GDP report. SPDR EURO STOXX 50 ETF (NYSEARCA:FEZ)  -0.03%  making a less-significant decline than the STOXX 50 Index, which fell 0.62 percent as a strengthening euro raised concerns about the region’s export business. SPDR S&P Homebuilders ETF (NYSEARCA:XHB)  -1.07%  following steep declines by Lennar (NYSEARCA:LEN), D.R. Horton (NYSEARCA:DHI) and Hovnanian (NYSEARCA:HOV). iShares Barclays 20+ Year Treasury Bond Fund (NYSEARCA:TLT)  -0.16%  approaching the breakeven level as fears that the FOMC would have bad news about the fate of quantitative easing subsided when no such plans were included in this afternoon’s FOMC Meeting Statement.   Learn More About iShares ETFs SPDR S&P 500 INDEX ETF (NYSEARCA:SPY)  -0.38%  as investors remain risk averse after the news that fourth quarter GDP declined by 0.1 percent. Bottom line: The stock market experienced a slight pullback on Wednesday as investors took time out to ponder the significance of the 0.1 percent decline in fourth quarter GDP. Sign up for Wall Street Sector Selector’s FREE Stock Market Timing Indicator!    Disclaimer: The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector’s Disclaimer , Terms of Service , and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.