{"id":4312,"date":"2011-05-10T07:26:19","date_gmt":"2011-05-10T12:26:19","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=4312"},"modified":"2011-05-10T07:26:19","modified_gmt":"2011-05-10T12:26:19","slug":"before-the-open-may-10-2","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=4312","title":{"rendered":"Before the Open (May 10)"},"content":{"rendered":"

Good morning. Happy Tuesday.<\/span>
\nThe Asian\/Pacific markets closed mixed. There were no big winners or losers. Europe is currently up solidly across the board. Almost every index is up at least 1%. Futures here in the States point toward a moderate gap up open that will put the indexes above yesterday’s high.
\n<\/span>
\nVery quietly the market has now bounced 2 straight days…albeit on light volume. The S&P had dropped about 40 points off its high, and as of today’s open, will be less than 20 of the high. <\/span>
\nI bought those reverse ETFs last Monday and then covered them on Thursday. Now I wait for my next opportunity, and to be honest, I’m not sure what that will be. Short this bounce or wait for the charts to reset and buy after the market rests or pulls back a day or so?<\/span>
\nHere’s the 60-min SPX chart I posted yesterday after the close. From a charting standpoint, there is nothing wrong here. After rallying hard off its August 2010 low, the index rested for about 8 weeks. Then it broke out and got a little follow through. And now it’s testing the previous resistance level. If you know nothing and instead base everything on the chart, you’d conclude the long term trend is up and we are simply doing a little backing and filling. There is nothing terribly alarming here, and as long as the internal breadth indicators which I talked about over the weekend maintain the certain levels, I’m going to continue playing the current action as a pullback within an uptrend, not the beginning of a new downtrend.<\/span>
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\nheadlines at Yahoo Finance<\/a><\/span>
\ntoday’s upgrades\/downgrades<\/a><\/span>
\nyesterday’s sector performance<\/a><\/span>
\nthis week’s Earnings<\/a><\/span>
\nthis week’s Economic Numbers<\/a><\/span>
\n