{"id":5461,"date":"2012-03-20T07:22:40","date_gmt":"2012-03-20T12:22:40","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=5461"},"modified":"2012-03-20T07:22:40","modified_gmt":"2012-03-20T12:22:40","slug":"before-the-open-mar-20","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=5461","title":{"rendered":"Before the Open (Mar 20)"},"content":{"rendered":"

Good morning. Happy Tuesday.<\/span>
\nThe Asian\/Pacific markets closed mixed. China and Hong Kong dropped more than 1%; there were no 1% winners. Europe is currently down across the board. Belgium, France, Germany, Amsterdam, Norway, Stockholm and London each dropped more than 1%. Futures here in the States point towards a large gap down for the cash market.<\/span>
\nThe dollar is up. Oil and copper are down. Gold and silver are down.<\/span>
\nThe big question after the Russell finally broke out and joined the other indexes in higher high territory is whether it was a legit breakout or will prove to be of the false variety. As of now all of yesterday’s gains will be wiped out at today’s open. This is what I wrote yesterday.<\/span>
\nI believe tomorrow is going to be a pivotal day. Many breadth indicators diverged from the price action and have now curled up. The small caps, which have been lagging, finally broke out to a higher high. There have been many reasons the market could have sold off (buy the rumor, sell the news scenarios with regards to earnings, employment numbers, FOMC, Greece, options expiration), but it hasn’t. Now that most things are in the rear-view mirror and so many of the bears have finally thrown in the towel, in a sick way, this is the time the market could surprise everyone and drop. I’m not predicting it. I’m just saying to be aware of its increased probability. This is why tomorrow is important. Can the small caps follow through on today’s breakout and put some distance between itself and resistance, or will today’s move prove to be of the false variety and immediately get sold into? We’ll see.<\/em><\/span>
\nThese are still my dominant thoughts because I’ve seen the scenario play out many times. The market climbs the proverbial wall of worry and ignores warning sign after warning sign, and then, when the stars align to support the next leg up, the market corrects. Be on the lookout. Manage your positions wisely.<\/span>
\nheadlines at Yahoo Finance<\/a><\/span>
\nheadlines at MarketWatch<\/a><\/span>
\ntoday’s upgrades\/downgrades<\/a><\/span>
\nthis week’s Earnings<\/a><\/span>
\nthis week’s Economic Numbers<\/a><\/span>
\n