Before the Open (Sep 7)

Good morning. Happy Tuesday. Hope you had a nice long weekend.
The Asian/Pacific markets closed mixed – none of them moved more than 1%. Europe is currently down across the board – losses are moderate. Futures here in the States point towards a moderate gap down for the cash market.
Last week we got an oversold bounce. Given how everything was so negative and so many market participants were stacked on one side of the market, it was not a surprise. But now the hard work begins. The first move is the easy move…it’s mostly short covering and momentum traders jumping on the near term movement. But for a move to last, bigger entities need to buy to support the price movement. It doesn’t have to happen today, but it does have to happen in the next couple days.
On a very short term basis, the market is overbought. On an intermediate term basis, the market is neutral and range bound and there’s room to move up before resistance is hit.
Everything that can be stacked against the market still is…and now that the first few days of Sept are complete, things will get tougher. Here’s the SPX daily. The first target (1100) was taken out Friday. Next upside target is 1130.

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