Its official. As reported in yesterday's edition of Opening View, Citigroup (C: sentiment, chart, options) confirmed today that is in talks with Morgan Stanley (MS: sentiment, chart, options) about "a possible combination of [its] retail brokerage business operated under the Smith Barney name and the wealth management business operated by Morgan Stanley." Citi added that no agreement had been reached, and that it had no further comment at this time.

The new preceded news that the company will take one more step toward dismantling itself in a pending announcement of a major reorganization, according to a story on The Wall Street Journal's Web site this afternoon. Per the report, Citi's plan will involve narrowing its overall mission to 2 areas, with a focus on retail banking in selected global markets, and wholesale banking for large corporate clients.

Whether as a correction to yesterday's 17% loss, or in reaction to this morning's news, C shares have rebounded more than 5% so far today. However the stock is struggling at the 6-6.50 region, an area that had provided support for the shares since late November 2008. What's more, the equity is also staring up at its declining 10-day and 20-day moving averages.