PRE MARKET THUNDER

Markets are poised to open higher despite this depressing statement out of GS "slump in global credit markets will force banks, brokerages, and hedge funds to cut lending by $2 trillion, triggering the risk of a substantial recession in the U.S." Losses from record foreclosures from subprime lending using a "back of the envelope calculation" may be as high as $400 Billion according to GS chief economist Jan Hatzius. Well, they could be correct but don't forget that a year or so ago GS forecasted a $100 price for a barrel for oil so who knows.

FDX lowers guidance for Q2 from $1.6 -$1.75 to $1.45-$1.55;

Also, lots of discussion this AM on CNBC about FED rate cuts going forward- Consensus is market participants are expecting cuts to continue and if they don't we have another big down draft in the market- My guess is they will as Ben won't the moniker " I didn't prevent the crash of 07/08."

How bout this- Fed's Krozner says oil prices may put "upward pressure" on inflation;

Gapping up- GRMN DSCO PBR DRYS LDK AMD CFC YHOO TOT BIDU RTP CSCO FCX EMC HPQ.

Looks like SPX 1,450 will hold and the next target on the upside is 1,474, the 50% retracement line- after that -50 day SMA at 1,484 and then 1,490, the big resistance number from earlier in the week and the big support area before the recent down draft.