{"id":4796,"date":"2011-08-23T07:37:01","date_gmt":"2011-08-23T12:37:01","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=4796"},"modified":"2011-08-23T07:37:01","modified_gmt":"2011-08-23T12:37:01","slug":"before-the-open-aug-23-2","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=4796","title":{"rendered":"Before the Open (Aug 23)"},"content":{"rendered":"

Good morning. Happy Tuesday.<\/span>
\nThe Asian\/Pacific markets closed mostly up. South Korea and Taiwan gained more than 3%; Australia and Hong Kong rallied more than 2%. Europe is posting solid across-the-board gains. Austria, France, Germany, Amsterdam, Stockholm, Switzerland and London are up more than 1%. Futures here in the States point towards a large gap up open, just like yesterday.
\n<\/span>
\nThe indexes have now tested their lows twice – yesterday and Friday. Is that enough? Can they double bottom here, rally to fill last Thursday’s big gap down and then test last week’s high? That’s what the bulls hope. In my eyes the trend is down and we’re going to see much lower prices, so any decent bounce is a gift that will enable us to short at higher levels. <\/span>
\nHere’s the S&P 60 min chart. A large 7-month consolidation period…then a breakdown and swift sell-off…then short-lived bounce…and now a test of the lows. I said two weeks ago a bounce back to the prior support was too easy and wouldn’t happen…that a bounce would either come up short or go much further. As it happened, the bounce came well short. Now we’re back in the same situation. If we bounce, I’ll look for it to come up short again or surprise everyone and go further than expected. There’s definitely a growing consensus the market is doomed which slightly increases the odds a rally develops some legs. More after the open.<\/span>
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\nheadlines at Yahoo Finance<\/a><\/span>
\ntoday’s upgrades\/downgrades<\/a><\/span>
\nthis week’s Earnings<\/a><\/span>
\nthis week’s Economic Numbers<\/a><\/span>
\n