Futures Point to Another Decline; Is it really because of GM?
Monday, March 30, 2009 7:22Stock futures are down sharply this morning ahead of the open. The DJIA is down 170 points while the NASDAQ is off 21 points. The mainstream media sources are attributing todays selloff to a comment made from the Obama administration that suggests a GM bankruptcy is a possibility. Is that really the reason for the selloff? GM is a company with a $2 billion market capitalization (The value of all of the outstanding shares).
Technicians argue that markets move in patterns, phases, and waves which may be anticipated with some degree of probability. Price is what’s important to us and we tend to dismiss the media explanations as “Noise.”
In our March 23rd post, we noted that the rally was losing steam and should end at, or about, 7,900 on the Dow Jones. The Dow reached a high of 7,931 on March 26th and has been falling since. Given the selloff that since followed (including this morning) the odds of a top being made is increased.
As mentioned in one of the comments of another post, it should be fun watching CNBC this week as they scramble for a reason.
Chart is from March 23rd post:
Related posts:
JFRANKS23 says:
March 30th, 2009 at 2:02 pm
good call on 7900