{"id":4913,"date":"2011-10-03T07:39:49","date_gmt":"2011-10-03T12:39:49","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=4913"},"modified":"2011-10-03T07:39:49","modified_gmt":"2011-10-03T12:39:49","slug":"before-the-open-oct-3","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=4913","title":{"rendered":"Before the Open (Oct 3)"},"content":{"rendered":"

Good morning. Happy Monday. Hope you had a nice weekend.<\/span>
\nThe Asian\/Pacific markets closed down across the board. Indonesia dropped more than 5%; Hong Kong lost more than 4%; Australia, Singapore and Taiwan more than 2%. Europe is currently down across the board. Germany, France and Amsterdam are down more than 2%. Futures here in the States point towards a relatively small gap down open for the cash market.
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\nI don’t have much to add to the comments I made over the weekend in my weekly report. The overall trend is down, but over the last two months the indexes have obviously been range bound – call it a distribution pattern within a downtrend. And on a shorter term basis, things seem to be deteriorating. The S&P has made two lower highs and a lower low within its pattern, the internals are firmly in bear mode but nowhere near being oversold, money is flowing into safer issues and many leading stocks have finally started to come down. <\/span>
\nThere isn’t much for the bulls to hang their hats on…except one thing. If Greece gets bailed out (they need another infusion of cash before the middle of the month), the market could jump (news trumps the charts). I’m not going to handicap the odds that happens, but we need to recognize its possibility. Whatever pop may follow would be good for all traders. If you’re a bull (not sure why you would be bullish at this juncture), you’d obviously welcome the higher prices, and if you’re a bear, higher prices would just allow you to short more at higher levels. <\/span>
\nI maintain my stance and see no reason to change it. The trend is down, so we look to short breaks of support and bounces that fizzle. For now my S&P 500 target is 1000 – approx. 131 points below Friday’s close. I personally think we’ll go lower than that, but for now that’s the level my charts tell me to target. 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>
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