{"id":3514,"date":"2010-09-23T07:30:42","date_gmt":"2010-09-23T12:30:42","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=3514"},"modified":"2010-09-23T07:30:42","modified_gmt":"2010-09-23T12:30:42","slug":"before-the-open-sep-23-2","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=3514","title":{"rendered":"Before the Open (Sep 23)"},"content":{"rendered":"

Good morning. Happy Thursday.<\/span>
\nThe Asian\/Pacific markets closed mixed – there were no standout winners or losers. Europe is currently down across the board – there are a couple 1% losers. Futures here in the States point towards a moderate gap down open for the cash market. <\/span>
\nSince about 30 min after the Fed, the market has been moving down. There are some divergences in place (groups and indicators not confirming the higher highs), and by several measures the market is overbought. The first drop off an overbought level is no big deal. The second day of declining prices induces some selling and gets some bulls worried. A third day continues the trend – more selling and even more get worried. At some point the market can cross a threshold, hit an air pocket and come down hard. That is the current risk. A drop off the recent high is not big deal, but at some point the bulls will run for the exits. Play good defense here. I’m not predicting this will happen right now, but we need to take note of the possibility so if it starts to happen, we aren’t entirely surprised by it.<\/span>
\nHere’s the S&P weekly. Everyone saw the top of the range. Not many saw resistance at 1150 as I pointed out a couple times last week. Since that level has turned prices back, it’s now a significant level that has to be dealt with. More after the open.<\/span>
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\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