{"id":7514,"date":"2014-04-07T15:04:33","date_gmt":"2014-04-07T20:04:33","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=7514"},"modified":"2014-04-07T15:04:33","modified_gmt":"2014-04-07T20:04:33","slug":"reminiscent-of-2007","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=7514","title":{"rendered":"Reminiscent of 2007"},"content":{"rendered":"

A development is building that is reminiscent of 2007. Let’s check out some charts from February 2007 (which aren’t available today) and then see how they relate to today. My argument back then was the broker\/dealers had predictive value…at least much more predictive abilities than the semis or a few other groups traders liked to key in on at the time.
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\nHere’s Merrill Lynch<\/strong>. It broke down Feb 25.<\/span>
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\nHere’s Lehman Brothers<\/strong>. It also broke down Feb 25.<\/span>
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\nAnd here’s Morgan Stanley<\/strong>. It broke down Feb 26.<\/span>
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\nBear Stearns<\/strong> didn’t break a key support level, but it did move down with force at the same time.<\/span>
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\nThen, on Feb 27, the entire market broke down in a big way.<\/span>
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\nNow let’s check out some current charts.<\/span>
\nTD Ameritrade<\/strong> sliced through support Friday and followed through today.<\/span>
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\nDitto for E-Trade<\/strong>.<\/span>
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\nSchwab<\/strong> held up okay Friday but got hit hard today.<\/span>
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\nMorgan Stanley<\/strong> failed to match the market’s recent new high. Then it broke support Friday and followed through today.<\/span>
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\nGoldman Sachs<\/strong> also failed to match the market’s recent high and is now breaking down.<\/span>
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\nThe Nasdaq has already put in two lower highs and a lower low. The S&P 500<\/strong> is sitting at support.<\/span>
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\nOne explanation for the weakness is the anti-HFT rhetoric floating around Wall St. on the heels of Michael Lewis’ new book Flash Boys.<\/span>
\nOtherwise, since I had a front row seat in 2007, I couldn’t help immediately recognize the similarities between then and now.<\/span>
\nBe on your toes.<\/span>
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