American markets plumbed the depths of its support levels today but finished above them. The Dow was down as low as 12,032 in the afternoon but climbed to close at 12,213. The S&P likewise fell below the 1320 support level all the way down to 1307 before closing at 1326. I think tomorrow starts lower but may recover by the afternoon. We may finish a little higher.
Bombay and Tokyo have had substantial haircuts so far this week. The Sensex finished Tuesday at 16,339 down more than 1000 points from Monday's open. Tokyo has proven more resilient to this sell off and held steady in Tuesday trading just under the 13,000 level. The risk is mostly on the downside here going into Thursday.
Oil and gold pulled off their highs and finished sharply lower. This is in keeping with our forecast that the week looked less bullish than last. Gold is the better bet of the two to head higher by the end of the week and next week. The Euro held onto its recent gains and closed at 1.52. It will likely stay within 1.1515 and 1.525 for the next couple days.
