Markets Set To Soar, GM Officially Declares Bankruptcy

Markets are shrugging off the General Motors news, which was already baked in, and more interested in the higher income numbers reported this morning. Some how this market will be forced to digest the unemployment numbers that will come from the announcement of GM plant closures.

Day traders are playing nothing but bullish set ups this morning in the SP 500 as the bears are getting ripped, there just is not any sellers going into the open. With the 50% retracement broken over night at 933 the next target looks like 954. The trend is bullish for day traders until a long set up fails.

Stochastics and the RSI are bullish for the SP 500 signaling that sideways to higher prices are possible near term. From a broad perspective, June needs to close above 929.00 or below 875.40 to clear up near term direction in the market.

Monday's pivot point, our line in the sand is 916.25

1st resistance is 930
2nd resistance is 941.75

1st support is 904.50
2nd support is 891

Our weekly pivot point for the SP 500 is 896

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The June NASDAQ 100 was higher overnight and trading above the previous reaction high crossing at 1437.75 thereby renewing this week's rally. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term.

If June extends this spring's rally, weekly resistance crossing at 1496.25 is the next upside target. Closes below the 20 day moving average crossing at 1395.97 would confirm that a short term top has been posted.

First resistance is the overnight high crossing at 1458.25
Second resistance is weekly resistance crossing at 1496.25

First support is the 20 day moving average crossing at 1395.96
Second support is the reaction low crossing at 1342.75

The June NASDAQ 100 was up 14.25 points. at 1450.25 as of 6:02 AM CST. Overnight action sets the stage for a higher opening by June NASDAQ 100 when the day session begins later this morning.

Pepsi Profits Down, Job Loses Mount At GM, Bank Of America Reports

"GM Exec Says 1,600 Will Lose Jobs In Next Few Days"
About 1,600 workers at General Motors Corp. will lose their jobs in the next few days as the troubled automaker accelerates cost cuts in order to qualify for more government aid. GM North America President Troy Clarke said in an e-mail to employees sent Monday that the layoffs are needed to ensure the company's long-term viability. "In these unprecedented times, GM is reinventing every aspect of our business, including our organizational size and structure, to create a lean and agile company," Clarke wrote....Complete Story

"Bank of America Posts 1Q Profit, Surpasses View"
Bank of America Corp. managed to avoid a loss in the first quarter, surpassing analysts' expectations and providing further evidence the banking sector might be improving. But the bank also took a hefty $13.4 billion provision for loan losses and its shares fell 55 cents, or 5.2 percent, to $10.05 in premarket trading. The Charlotte, N.C.-based company earned $2.81 billion after paying preferred dividends, or 44 cents per share, compared with a profit of $1.02 billion, 23 cents per share, in the year ago period. Analysts surveyed by Thomson Reuters expected profit of 4 cents per share....Complete Story

"PepsiCo 1st Quarter Profit Edges Down"
Beverage and snack maker PepsiCo Inc. said Monday first-quarter profit edged down 1 percent, hurt by the stronger dollar and continued weak demand for soft drinks in the U.S., but results surpassed analyst expectations. Separately, Purchase, N.Y. based Pepsi offered $6 billion to buy out remaining shares of its two largest bottlers, PepsiAmericas and Pepsi Bottling Group. Profit for the quarter ended March 21 fell 1 percent to $1.14 billion, or 72 cents per share, from $1.15 billion, or 70 cents per share, a year ago. Analysts polled by Thomson Reuters, on average, expected a profit of 67 cents per share....Complete Story


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