{"id":4830,"date":"2011-09-06T07:23:22","date_gmt":"2011-09-06T12:23:22","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=4830"},"modified":"2011-09-06T07:23:22","modified_gmt":"2011-09-06T12:23:22","slug":"before-the-open-sep-6","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=4830","title":{"rendered":"Before the Open (Sep 6)"},"content":{"rendered":"

Good morning. Happy Tuesday. Hope you had a nice weekend.<\/span>
\nYesterday, while the US markets were closed, the Asian\/Pacific markets dropped 1-2%, and most European indexes sold off 4-5%. Today, the Asian\/Pacific markets closed mixed but with a bearish bias. The biggest losers were Australia, Japan, South Korea and Taiwan. Europe is mostly up. The Swiss market is up 3.8% and London is up 1%, but Stockholm is down 4.6%. Futures here in the States suggest a large gap down for the cash market. We have some catching up to do.
\n<\/span>
\nThis week is setting up as a make or break week. The lows can hold, and this volatile range we’ve been in may continue. Or the indexes could completely melt down and drop 10%.<\/span>
\nThe overall trend is down…it’s been down for over a month…that hasn’t changed…my longer term bias has been firmly planted in the bears’ camp since the beginning of last month. Short term, by bias has alternated between up and down. Twice the S&P has bounced 100 points the last month…no reason not to play those bounces…you just gotta know you’re going against the overall trend, so it’s wise to be ahead of the curve taking profits, and you can’t worry about leaving money on the table. Right now the short term trend is down…no surprise there. <\/span>
\nHere’s the 60-min S&P chart. From a chart pattern standpoint, charts don’t more simpler than this. The index broke down from a large topping pattern and now trades in a bear wedge\/flag\/rectangle (whatever you want to call it). Several measuring techniques put the target under 1000 should the pattern resolve down.<\/span>
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\nThis will be a huge week…it may dictate the next couple months. Be careful. More after the open.<\/span>
\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