American markets have closed decisively below important support levels (12150/1320) today as the Dow closed down 214 points at 12,040 and the S&P finished at 1304 down 29 points. These were near the lows of the day and reflect the overall pessimistic mood contained in the Moon-Saturn opposition that perfected near noon. This was in keeping with our negative call yesterday and confirmed the weekly forecast that we would break through these levels this week. There's one more chance for the indexes to finish higher for the week, but while I can see an up day, I don't think they're going to make it back above water.
Bombay closed higher Wednesday at 16,542 for a nice 212 point gain in keeping with our forecast. Friday will be negative on the heels on New York's bearishness so we likely managed to get that right. It's very possible that it, too, will breach its support levels of 16,200. Tokyo will likely finish the week below 13,000, perhaps around 12,600.
The Euro continues to its own shock and awe campaign as it finished at 1.5382. While our bullish stance on the Euro has been borne out by recent moves, its day-to-day fluctuations have been harder to peg. I think it will be up further tomorrow. The greenback went below 0.65 for a time today. I am expecting it to decline to 0.60 at some point this year.
Oil rose almost a dollar to finish at 105.44 confounding my expectations. It's on a relentless roll now and it will continue for the next few weeks at least. The next few days look very bullish so $110 is not out of the question. Gold slumped back $11 to 977 but will climb higher Friday and Monday. Let's see if it can hit the 4 digit mark.
