Thursday, December 11, 2008

New York falls on worries over auto bailout

New York shares fell over 2% as worries over the possibility that no auto bailout would be reached in Congress prompted an afternoon sell off. The Dow closed at 8565 and the S&P at 873. Asian stocks were mixed and Mumbai was largely unchanged after a strong rally at the close as the Nifty ended the session at 2920 and the Sensex at 9645.

It looks as though all that negative planetary energy is finally catching up to the market here. Asia should be down significantly Friday (probably below 2850 on the Nifty) and New York will probably continue to move lower. There's some support at Dow 8100 so it may not breach that level until early next week. It's still possible we could see a huge sell off Friday in New York, but I wouldn't bet the farm on it. Let's see what transpires.