{"id":5867,"date":"2012-08-07T07:53:10","date_gmt":"2012-08-07T12:53:10","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=5867"},"modified":"2012-08-07T07:53:10","modified_gmt":"2012-08-07T12:53:10","slug":"before-the-open-aug-7","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=5867","title":{"rendered":"Before the Open (Aug 7)"},"content":{"rendered":"

Good morning. Happy Tuesday.<\/span>
\nThe Asian\/Pacific markets closed mostly up, but only India (up 1.1%) moved more than 1%. Europe is currently trading mixed and with a bullish bias. Greece is up 2%; France and Germany are also up. Futures here in the States point towards a positive open for the cash market.
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\nThe dollar is down. Oil and copper are up. Gold and silver are up.<\/span>
\nAustralia kept interest rates unchanged. The Aussie dollar reached a 4-1\/2 month high.<\/span>
\nA lack of news yesterday produced a lack of movement. It was a productive day that saw the market move up and the small caps and Nas lead, but volume was light and selling into the close was noticeable.<\/span>
\nDepending on how you draw you trendlines, it could be argued the S&P is near resistance. The red trendlines in the following 60-min chart are parallel, and they capture all the movement from the last two months. “Containing” and “describing” the price movement increases the odds they are significant. I like the overall action, although the personality of the index (5 steps forward, 4 steps back, lots of sudden reversals, lots of gaps) has made swing trading challenging.<\/span>
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\nHere’s the equivalent Russell 2000 chart. It’s definitely a concern the small caps have been making lower highs and lower lows while the large caps have trended up. Last week $RUT made a higher low, and now it’s close to a higher high. It’s a needed step. This divergence needs to be negated if the market is going to sustain a rally. We need to see evidence traders\/investors are willing to take on a little risk. A market that sees most of the money flowing into large cap safe havens will not stand. More after the open.<\/span>
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\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>
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