Thursday, December 4, 2008
US rally ends; Mumbai rises
US stocks slid 3% today on fears that GM may have moved one step closer to bankruptcy. The Dow traded above 8600 a couple of times today but sold off in the afternoon as sentiment buckled on the weight of a barrage of bad economic news. Earlier in the day, Indian stocks had moved 4% higher as the Nifty closed at 2788 and the Sensex at 9229.
The market is now quickly running out of time to make a move higher towards 9000 which now seems quite remote. I had thought today might be higher, but in all likelihood this downward afternoon move was a foreshadowing of a larger move down over the next two weeks. Tomorrow may be another big down day.