Market setback: Gov't pulls back offer of more bailout for Auto's

Yesterday the government said they were NOT going to bail out GM as they had not done enough according to news reports. This story caused the Futures to be down in Asia and this morning the stock market opened down 200 within 10 minutes of the open, causing both the Dow and S&P to drop below the 50 day Moving averages and the S&P to go below the 800 level.

What effect this story is going to have on the market this week is unknown. But as I said a little over a week ago, any news will move this market dramatically in either direction. The market can recover from this depending on the story later on today by President Obama. But right now we don't have the details of the governments position other than GM's Wagoner has resigned and Chrysler is being asked to merge with Fiat. Stay tuned.