{"id":3729,"date":"2010-11-18T08:27:59","date_gmt":"2010-11-18T13:27:59","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=3729"},"modified":"2010-11-18T08:27:59","modified_gmt":"2010-11-18T13:27:59","slug":"before-the-open-nov-18-2","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=3729","title":{"rendered":"Before the Open (Nov 18)"},"content":{"rendered":"

Good morning. Happy Thursday.<\/span>
\nThe Asian\/Pacific markets closed mostly up – there were a couple 1% winners. Europe is currently posting solid across-the-board gains. Futures here in the States point towards a very large gap up open for the cash market that will open the S&P near Tuesday’s high.<\/span>
\nAs stated yesterday, the price chart looks like the recent action is a pullback within a downtrend, but several key indicators would suggest a structural change is underway and we’re in the beginning stages of a move down. I’m more apt to believe the indicators than the price charts because all large pullbacks have to start as small innocent pullbacks. But the one unknown, the one thing that throws all the charts and analysis techniques out the window is the Fed. They’re playing a role they don’t normally play, and what they’re doing is directly influencing the market to a degree that the charts don’t always matter.<\/span>
\nHere’s the SPX 60-min chart from yesterday. As of now the S&P will open near 1190 – 10 points below what I consider a key level. <\/span>
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\nThe shorter term 15-min chart tells us 1195-1196 may pose resistance. <\/span>
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\nSo there ya go. From a technical standpoint the area between 1195-1200 is resistance, but we don’t know how useful support and resistance are right now. We traders spend years studying and honing our skills only to find out everything gets thrown out the window from time to time. <\/span>
\nToday’s open will be 5 S&P points below Monday’s close…which I’d consider flat trading…which is what was needed to cause lots of pain among option buyers. 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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