{"id":4800,"date":"2011-08-24T07:18:56","date_gmt":"2011-08-24T12:18:56","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=4800"},"modified":"2011-08-24T07:18:56","modified_gmt":"2011-08-24T12:18:56","slug":"before-the-open-aug-24-3","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=4800","title":{"rendered":"Before the Open (Aug 24)"},"content":{"rendered":"

Good morning. Happy Wednesday.<\/span>
\nThe Asian\/Pacific markets closed mostly down. Hong Kong lost more than 2%; India, Japan, Singapore and South Korea lost more than 1%. Europe is currently trading up. Austria is up more than 2%; Belgium, Germany and Norway are up more than 1%. Futures here in the States point towards a gap down for the cash market.
\n<\/span>
\nMy overall stance has not changed. I believe we are in the beginning stages of a downtrend, and lower prices are coming. But in the short term, a bounce is a definite possibility. How far will a bounce go if it materializes? My attitude is the same as two weeks ago. To say the market will bounce to last week’s high or to the previous support level is too easy. It’s more likely the market bounces further than we think is logically possible or comes up short. The odds favor it coming up short because the trend is down, and the market is so weak but there is a reason to entertain the other scenario. Namely because everyone is so bearish. Everyone assumes the market is going to fall apart, and when everyone gets stacked on one side of the market, surprises can happen. <\/span>
\nHere’s the 5-day, 5-min SPX chart. As of now today’s open will be near 1150 – that’s not too bad considering yesterday’s near 40 move. Filling the gap is step one for the bulls.<\/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