{"id":3723,"date":"2010-11-16T08:29:26","date_gmt":"2010-11-16T13:29:26","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=3723"},"modified":"2010-11-16T08:29:26","modified_gmt":"2010-11-16T13:29:26","slug":"before-the-open-nov-16-2","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=3723","title":{"rendered":"Before the Open (Nov 16)"},"content":{"rendered":"

Good morning. Happy Tuesday.<\/span>
\nThe Asian\/Pacific markets closed mostly down – China dropped 4%. Europe is current mostly down – losses are moderate. Futures here in the States point towards a moderate gap down open for the cash market. <\/span>
\nThe market has dropped 5 of 6 days…all the post FOMC gains are now gone. <\/span>
\nHere’s an update of the charts I posted yesterday. My hypothesis that the short term trend was down and lower prices were more likely than higher prices (even if the market opened on an up note) was correct, but the gap up widened the bearish pattern. The 5-day, 5-min chart is below. Today’s open will be below last Friday’s low, so the pattern of lower highs and lower lows continues.<\/span>
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\nBacking the chart up a little, here’s the 13-day, 15-min chart. The post FOMC gap has been filled…the index is back in the churning range that existed heading into the election.<\/span>
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\nThe talk at the end of last week was that every day this week was a POMO day, and since the market has done much better on POMO days than non POMO days, everyone’s bias was to the upside. Hence it makes perfect sense for the trade to not work any more. Trade what happens. 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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