Monday, October 26, 2009

Didn't Take Much in the End

A couple of reality based mini shocks like the EU pushing Banks Too Big To Fail to downsize:

ING Will Divest Insurance Units, Sell $11.3 Billion of Stock to Repay Aid ING Groep NV plans to raise 7.5 billion euros ($11.3 billion) in a rights offering and sell its insurance units as the biggest Dutch financial services company seeks European Union approval for a taxpayer-funded bailout.
More to come?

And  Congress displaying un common sense:

From Bloomberg: Housing Tax Credit Probably Won’t Be Extended in U.S., ISI Says
“There could be an agreement reached as early today on the Reid/Baucus amendment that would PHASE OUT (not extend, as we originally understood when the idea was first proposed last week) the home buyer tax credit,” ISI analysts said in the note.
We should know more soon. Most economists opposed an extension of the tax credit because it is poorly targeted, very expensive per additional home sold, there was little job creation, fraud was widespread, and there are many serious unintended consequences.

And then there's this :

Remember that wedge?

In any event , the SP support is just under the mid day consolidation at 1060, a 50% retrace of 1018 to 1100, and 1050, the .618 retrace of same. AND cutting SOMEWHERE in there is the trend line up from the July lows 867.

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