Before the Open (Aug 26)

Posted on by Jason Leavitt

Good morning. Happy Thursday.
The Asian/Pacific markets closed mixed – there were no standout winners or losers. Europe is currently up across the board – there are no big winners. Futures here in the States suggest a flat open for the cash market.
The market gappped down yesterday, quickly sold off twice when bad news was released and then trended up all day and closed near its intraday high. For the market to move up in the face of bad news is a good sign for the bulls. The small caps led all day – another good positive sign. And the S&P held 1040 – a level that has brought buyers to the market on a couple occasions.
In the near term my bias is to the upside, but lots of damage has been done and lots of negatives still exist. So for now I’ll play a bounce if it materializes, but I don’t expect to be a holder. Most likely trades to the upside right now won’t last long.
Here’s the S&P 60-min. Upside targets are 1060 and 1070.

headlines at Yahoo Finance
today’s upgrades/downgrades
this week’s Earnings Reports
this week’s Economic Numbers

0 thoughts on “Before the Open (Aug 26)”

  1. You and I work off different time frames.
    If the S&P wants to move up to 1200, I’m all for it…it’s much easier to make money on the long side. But I’m not going to dig my heels in and argue or bargain with the market. Trading is a big game of follow the leader, and I’m not the leader.

  2. By the very same token you don’t want to get caught ‘chasing the trade’ Today was a perfect example when the Dow was bear flagging and then all of a sudden it fell out of bed. HW

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