{"id":3625,"date":"2010-10-20T07:27:48","date_gmt":"2010-10-20T12:27:48","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=3625"},"modified":"2010-10-20T07:27:48","modified_gmt":"2010-10-20T12:27:48","slug":"before-the-open-oct-20-2","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=3625","title":{"rendered":"Before the Open (Oct 20)"},"content":{"rendered":"

Good morning. Happy Wednesday.<\/span>
\nThe Asian\/Pacific markets closed mostly down – losses weren’t too steep. Europe is currently mixed with a bullish slant. Futures here in the States point towards a gap up open for the cash market.<\/span>
\nOn Monday the market closed as strong as it’s been in a couple weeks, so yesterday’s give back was not a surprise. Call it the Euphoric Indicator. As soon as you think you’re a genius, as soon as start getting full of yourself, as soon as it seems too easy to make money because everything you buy goes in your favor, it’s time to get smacked around, and that’s what happened to the bulls yesterday.<\/span>
\nHeading into yesterday, the percentage of S&P 1500 stocks above their 20-day MAs had been above 80% for 10 straight days. Now it’s at 69%.<\/span>
\nThe percentage of S&P 1500 stocks above their 40-day MAs had been above 90% for 7 straight days. Now it’s at 86%.<\/span>
\nIndicators which have been overbought and have stayed overbought are now coming down.<\/span>
\nHere’s the 30-min S&P chart. The move off the Aug low has been super strong and steady – 140 points in 7 weeks. Marked are levels I’d consider to be support with 1150 being the big one.<\/span>
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\nAfter yesterday, the big question is: how many bulls got burned yesterday and how many of them very badly want to get out if given a chance at a slightly higher level (i.e. how many bad holders wanna get out even)?<\/span>
\nThe flip side is there are probably many day traders itching to short an early bounce today.<\/span>
\nThe dynamic is fun. More after the open.<\/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>
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