Tuesday, October 14, 2008

New York fails to hang on to gains, Dow down 1%

After a strong opening rally to 9750, the Dow lost ground the rest of the day and closed lower by almost 1%. At the close it stood at 9310 while the S&P ended the day at 998. This pattern echoed similar intraday patterns in other markets. In Mumbai, the Nifty opened sharply higher at 3650 but ultimately failed to sustain the rally and closed slightly up on the day at 3518.

I think there is still a possibility for gains tomorrow and Thursday, although Thursday's Moon-Jupiter trine looks like a more reliable indicator of a higher close. This will likely translate to a rise on Asian markets on Friday. It's possible we will again see 9750 at some point, with 10,000 as a genuine, if less likely, outcome. Overall, I think we are within 5% of the top of this rally.