GM’s powerful earnings driven breakout yesterday appears to have failed.  The stock blew through a key overhead trendline(linked July/Dec/Jan highs) on Wednesday with a huge upside gap.  By the close it appeared the breakout had lost a bit of steam.  Today the weakness continues in a big way.  GM is down 3.4% and is trading near this week’s low($38.35).  Yesterday’s news driven buyers are taking some considerable heat.  A close below the $38.00 area on Friday would be quite damaging.  We are watching the action closely.

At time of publication we are long GM in some managed accounts.