{"id":4381,"date":"2011-05-25T07:07:22","date_gmt":"2011-05-25T12:07:22","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=4381"},"modified":"2011-05-25T07:07:22","modified_gmt":"2011-05-25T12:07:22","slug":"before-the-open-may-25-2","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=4381","title":{"rendered":"Before the Open (May 25)"},"content":{"rendered":"

Good morning. Happy Wednesday.<\/span>
\nThe Asian\/Pacific markets closed mostly down. Australia, China and S. Korea lost more than 0.9%. Europe is currently mostly down. Only Austria is posting a significant loss. Futures here in the States point towards a down open for the cash market, which is much better than where the futures were last night.
\n<\/span>
\nThe US dollar is basically flat. Gold and silver are up. Oil is down slightly.<\/span>
\nIn my opinion, the bulls don’t have much room for error here. All downtrends start as innocent pullbacks within uptrends, but at some point, the pullback goes too far and the uptrend is not salvageable until a complete washout occurs. This is the current situation. Here’s the 30-min SPX chart. The bulls do not want to see the index fall below the pattern.<\/span>
\n\"\"
\nAnd here’s the weekly. For the first time since last August, the index is in jeopardy of closing below its 20-day EMA which is in the middle of the Bollinger Bands. If this happens, odds favor a move to the lower band which is currently at 1275.<\/span>
\n\"\"
\nUntil proven unwise, I’m going to continue playing this like a downtrend. That means bounces are shortable. More after the open.<\/span>
\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