Tuesday, December 23, 2008

Stocks slump further

New York continued its listless mood as the outlook for 2009 weighed on investors' minds. The Dow managed to stay above the 8400 support level but closed down 1% at 8419 while the S&P ended the day at 863. Stocks in Mumbai were negative from the open and fell over 2% as the Nifty closed at 2968 and the Sensex at 9686. Indian stocks remain above their 50 day moving average but seem ripe for a sell off.

I had thought we would see more upside by now with the Mercury-Venus-Uranus aspect. Time is running out for any last ditch rally before we head decisively lower. New York could rise Wednesday, but I'm less optimistic about Mumbai's chances. It will be interesting to see the effect of the midday (IST) Moon-Mars-Jupiter alignment. Given that Mumbai went higher in the December bounce, it is more vulnerable to profit-taking. Nifty 2525 is now very much on the table.