The futures are down this morning about where they were last night, sitting right on the first level of support at the 848 pivot. Here’s a snapshot of the overnight action:
The dollar is up and back inside that triangle I showed. Bonds are up as well and this is a BIG week for bonds with auctions galore beginning today.
No economic data today, but Wednesday is the big day with GDP and the FOMC wordsmithing.
GM announced they are laying off another 23,000 workers, cutting 40% of their dealerships and shutting down the Pontiac name. They are also attempting to restructure their debt by offering 225 shares of stock to bondholders for each $1,000 in debt ($4.44) per share. GM is trading at a buck-eighty. The Bloomberg article I’m referencing doesn’t address the disparity just that they seek to reduce debt by $44 billion.
Ford is taking the opposite stance and say they are going to build more cars this year than last. Okkkkay, we’ll see how that works out for them.
So, as you remember, last Monday was a gap down that took the entire week to fill. Now we’re gapping down over the same range we gapped before. Is the swine flu sufficient to keep down? We’ll find out. 848 pivot first, then the 100dma at 830, then 798. The battle is on!
Going to have some Martin Armstrong stuff coming... answers to your questions and another article. Should be interesting.
Have a great day,