Friday, October 24, 2008

US stocks drop 3% on global recession worries

It was another losing day on Wall St. as stocks probed ever closer to the Oct 10 lows as investors contemplated the grim possibility that the US recession may go global. After falling below 8200 at one point, the Dow closed at 8378 while the S&P ended trading at 876. The New York decline followed an even more negative session in other world markets. In India, the RBI unexpectedly left rates unchanged and the markets sold off precipitously as the Nifty lost 12% and closed at 2584 while the Sensex finished at 8701.

India's disastrous decline was somewhat foreshadowed in the Mars conjunction to natal Rahu in the NSE chart I had mentioned earlier. While I was calling for a generally day negative across the board, I wasn't quite prepared for the extent of panic in Indian markets. I still think we're at least another week from the bottom, but India may have seen the worst of this decline with this 12% loss today. Still with a lot of support near the 2000 level on the Nifty, one wonders if it can go all the way there in the next two weeks. Monday is shaping up to be very negative globally and in the US in particular. I'll post more details in my weekly forecast.