{"id":6547,"date":"2013-04-16T07:38:40","date_gmt":"2013-04-16T12:38:40","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=6547"},"modified":"2013-04-16T07:38:40","modified_gmt":"2013-04-16T12:38:40","slug":"before-the-open-apr-16-3","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=6547","title":{"rendered":"Before the Open (Apr 16)"},"content":{"rendered":"

Good morning. Happy Tuesday.<\/span>
\nThe Asian\/Pacific markets closed mixed. India rallied 2.1%, Indonesia 1%. Australia, Hong Kong, Japa and New Zealand dropped. Europe is currently down across the board. Greece is down 2%, Belgium and Stockholm 1%. Futures here in the States point towards a big gap up open for the cash market.
\n<\/span>
\nThe dollar is down. Oil is down slightly, copper up. Gold and silver are both up.<\/span>
\nHeading into this week I was skeptical of last week’s breakout. The price action was very good, but the lack of confirmation from several breadth indicators, several key groups and many stocks made me pause. Plus the S&P had rallied 50 points in five days. <\/span>
\nThen the market got killed yesterday. It was easily the biggest down day in a long time led by commodities which got crushed. Gold suffered its biggest 2-day drop in 30 years, but I don’t care much about gold. It’s a speculative asset class which is not indicative of anything. I do care about oil, steel, copper, aluminum and other metals that suggest deflation is a real threat. Gold is a very small group; the combined market cap of the entire group is very small. Oil on the other hand is obviously a different story. The group is massive, very important, very indicative of what’s going on in the world and very influential with regards to the movement of the indexes. If oil continues down, it will be hard for the indexes to right themselves.<\/span>
\nIn the very near term anything goes.<\/span>
\nOver the long term I still like the market; I still think 2013 will be a good year for stocks. <\/span>
\nBut in the intermediate term, there’s definitely been some deterioration, and the odds of a spring\/summer pullback is growing. <\/span>
\nCharts like the following weekly S&P chart are getting my attention. Each time the RSI has broken support, a correction has followed. The caveat is that this is a weekly chart, so the RSI won’t close until Friday. If the market bounces the next four days, the RSI could close back above 70.<\/span>
\n\"\"
\nBe very careful here. More after the open.<\/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