GM Cancels Deal to Sell Opel to Magna Citing Improving Business Conditions

An interesting development this morning was the decision by General Motors (GM) to scuttle the deal with Magna (MGA, MGA.a.to) for Opel.  GM’s reasoning for this is that business conditions are improving.  GM was also the recipient of bailout funding.  It will be interesting to see what, if any, impact this will have on GM and MGA stock prices today.

Futures and the DAX are positive this morning indicating a positive open.  The market condition scans are mixed with a slight bias to the downside.  The market bias indicators are neutral indicating another choppy day intraday.  Other market breadth indicators pointing to this include the VIX, which spiked on Friday and has pulled back for the last two days.  The TRIN for the NYSE is still above one, but declining, also confirming some of the weakness in the price action.

In Canadian news, Enbridge (ENB.to, ENB) reported record earnings and has increased guidance, which should provide a boost to this stock today.

The markets continue to be in transition mode as evidenced by the extreme intraday choppiness yesterday, caution is advised for today as we see more of the same.  These type of conditions increases the risks for intraday and swing traders as the markets can turn rapidly triggering stops and possibly creating losses.

Index	Change	%Change	Level	Phase
TSX	+147.55	+1.36%	11025.90	Warning
DJIA	-17.53	-0.18%	9771.91	Bullish
Nasdaq	+8.12	+0.40%	2057.32	Warning
SP 500	+2.53	0.24%	1045.41	Warning
Russell 2000	+8.22	+1.46%	570.62	Warning
NYSE	+27.76	+0.41%	6812.70	Warning

Source: Telechart

Short Term market outlook:

Bias: Scans showing a negative bias

Energy: moderate

Primary Trend: sideways to down

Sector	Phase
Consumer Staples	Bullish
Healthcare	Warning
Technology	Warning
Utilities	Warning
Energy	Bullish
Financials	Warning
Industrials	Warning
Materials	Warning
Consumer Discretionary	Warning

Source: Telechart