Optimism is being smashed this morning as futures portray a 2% decline. Early morning futures were much worse than currently. The rally has given us a 21% gain and that is being be tested.
Banks and autos being crushed as Geithner and Obama take both to the wood shed. Tough talk from Washington, all of a sudden, is not welcomed. Market participants wrestle with their feelings towards government intervention into industry vs: not doling out public funds into failed businesses.
Obama will give us his recipe for auto revival this morning. Probably a better plan than Wagoner’s.
Watch S&P 803; it should hold but if not then we dip into the 7’s.
