Tuesday, November 18, 2008

US stocks move higher on rally at the clse

With a strong rally at the close, US stocks moved 1% higher after venturing into retest territory in the early afternoon. The Dow finished at 8424 and the SPX at 859. Asian markets were lower as stocks in Mumbai lost 4%. The Sensex ended trading near the lows of the day at 8937 and the Nifty at 2683.

While the Dow did not quite match its October low, the SPX did and in fact almost
matched Thursday's low of 820. The rally near the close is an indication of things to come this week. There's a chance for Dow 9000 by Friday and Nifty 3000. Let's see if enough market participants believe that he have had a retest to push prices higher.