Looks like a new report that the CBO estimates that the $2.5T deficit plan will only really be $2.1T (thus potentially angering some on the GOP side) helped push the S&P 500 exactly to the 200 day exponential moving average as discussed about 30 minutes ago. We've had a small cursory bounce as we wait to see how this level holds.
Obviously like much of late 2008 and early 2009, headlines out of D.C. are more important than traditional metrics.
As obnoxious, lawmakers are supposed to vote on a 73 page deal to create a framework for a 10 year plan in less than 24 hours.
- A new study says the debt and budget bill backed by President Barack Obama and congressional leaders would save taxpayers at least $2.1 trillion over the coming decade.
- The Congressional Budget Office analysis says the initial down payment of spending cuts — tight “caps” on the operating budgets of Cabinet agencies like the departments of Defense and Education — would produce more than $900 billion in savings over 10 years.
- The rest of the savings would come from a special bipartisan committee that would make recommendations for the rest of Congress to vote on later this year. There’s no way to predict what the panel will come up with, but CBO credits at least $1.2 trillion more in savings because the legislation contains a special enforcement mechanism.