{"id":2414,"date":"2009-12-04T08:35:16","date_gmt":"2009-12-04T13:35:16","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=2414"},"modified":"2009-12-04T08:35:16","modified_gmt":"2009-12-04T13:35:16","slug":"before-the-open-dec-4","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=2414","title":{"rendered":"Before the Open (Dec 4)"},"content":{"rendered":"

Good morning. Happy Friday.<\/span>
\nBy itself, yesterday’s late-day sell-off wasn’t a big deal. The overall trend remains in tact, and the 3-week consolidation period continues. But looking a little deeper, a major warning sign may have been flash – a possible “canary in a coal mine.”<\/span>
\nThe financials got crushed. They’ve been lagging – I’ve noted it constantly the last several months. How many times have I said: “The trend is up, but the banks and small caps are lagging?”<\/span>
\nBut despite the lagging, the financials never broke down or traded in a way to negatively influence the rest of the market…until possibly now. In fact last night while looking at charts, I was reminded of the summer of 2007 when all the investment banks suddenly broke down while the overall market remained in good shape. The market rolled over soon after; I wonder if this the same will happen this time. At the very least, keep stops super tight on longs because if the market falls apart, it can fall apart fast.<\/span>
\nHere’s $BKX. It traded above horizontal resistance yesterday and immediately got pushed back.<\/span>
\n\"\"
\nRepresenting the large banks, here’s WFC. It broke down yesterday on huge volume and has one more decent support level at 26.<\/span>
\n\"\"
\nRepresenting credit, here’s AXP. Big down day on big volume.<\/span>
\n\"\"
\nHere’s GS. I’m not sure what they represent, but it’s noteworthy the stock is nowhere near its high at a time the S&P made a new high yesterday. And it closed below support yesterday.<\/span>
\n\"\"
\nMaybe the weakness was due to Bernanke acting tough yesterday – he wants to get reappointed. Who knows. In any case, we cannot ingore the huge selling pressure from the financial group.<\/span>
\nEmployment numbers are out…<\/span>
\nUnemployment rate is 10.0% (down from 10.2%)<\/span>
\nNonfarm payrolls dropped 11,000<\/span>
\nFutures spiked on the news. It’ll be a fun day.<\/span>
\nheadlines at Yahoo Finance<\/a><\/span>
\ntoday’s upgrades\/downgrades<\/a><\/span>
\nthis week’s Earnings Reports<\/a><\/span>
\nthis week’s Economic Numbers<\/a><\/span>
\n