Before the Open (Feb 2)

Posted on by Jason Leavitt

Good morning. Happy Wednesday.
The Asian/Pacific markets closed up across the board – Hong Kong, Japan and Indonesia gained more than 1%. Europe is mixed with a bearish bias – only Stockholm (down 1.8%) has moved more than 1%. Futures here in the States are flat.

Last Friday was the single biggest down day since August, and it has taken all of two days to completely recover the losses – not bad. The Dow and S&P are sitting at new highs. The Russell is breaking out of a falling wedge. The Nas looks great – it’s forming a bullish consolidation pattern within a solid uptrend. But as I stated yesterday, I want more. I want to make sure yesterday wasn’t one of those “first day of the month” scenarios. Here are the daily charts.

I posted many set ups on the message board yesterday. The fact there are so many (relatively speaking) good looking charts is a good sign. But I still think we need at least one more good up day to solidify the beginning of this leg up. The market took a step in the right direction yesterday, but it still has some proving to do. More after the open.
headlines at Yahoo Finance
today’s upgrades/downgrades
this week’s Earnings Reports
this week’s Economic Numbers

0 thoughts on “Before the Open (Feb 2)”

  1. Jason,
    There’s a broadening top pattern on the RUT/TF daily chart that you’re missing. Go back to the 12/21 bar and then draw your upper and lower trend lines. You can clearly see that 820 area is the next target.
    Also, go to the RUT/TF weekly charts and look at the bar pattern starting at 5/04/2009. Those 4 bars are just about what is going on now. If this repeats, there will be a strong up-week (next week) followed by multi-week selling. This time around though, the 772 RUT area will probably not hold and the 12/01/2010 index gaps get filled.

  2. Michael, I ask you, what about a double top scenario
    on the Rut of 808? Check the short term chart.
    2) Do you know about the end of month/beginning
    of month bullish cycle? Regarding that matter,
    the selloff could begin over the next few days
    thus avoiding the strong week for next week
    scenario. HW

  3. As usual a little news can undo the enthusiasm. EDP is suggesting that euphoria is not without its detractors. But the day looks like a set for a further decline some time in the next two weeks. I am long many setups but a little hesitant.

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