Futures are down steeply this morning, with S&P futures off 20 points as I type and DOW futures off nearly 200. Here’s the chart of overnight action:
With the /ES at 795 and sitting in a big bearish flag, it would appear that the potential ending diagonal count that had one more up leg coming is off the table as we are now well beneath the bottom border.
On top of the finding that the bank profits are coming from AIG, we also have the automaker news, and Geithner saying that the banks will need more “help” (need to steal more taxpayer money). Blackstone feels that they are evidently more powerful than the SEC (because they are) and refuse to release fund performance that the SEC requested. Also this morning, Morgan Stanley issued a market sell recommendation.
Pivot support comes at 789, then 768. With the 800 level broken, I think it’s very likely that we test the 750 area, and possibly more.
No economic data today, but a bunch later in the week.
Again a busy week for me, so I’ll be watching and posting, just not as often as I normally would.
Have a good day,