Wednesday, January 28, 2009
Stock rally extended
Wall St rose sharply today on expectation of the bank bailout and the passing of the stimulus plan. Stocks gained 3% as the Dow closed at 8375 and the S&P at 874. Indian markets also extended Tuesday's gains as the Nifty closed at 2849 and the Sensex at 9257.
So far the rally is ahead of schedule, as I had expected declines earlier in the week and for gains at the end of the week. The market has risen on the heels of the Mercury-Mars conjunction, perhaps as the negativity of Mars moves out of the picture. While Mercury approaches its direct station on the weekend, we can still wonder how long this rally will last. There will be a lot of resistance around 8500 on the Dow and 880 on the SPX. The Nifty may similarly have a tough time going over 2950 and staying there.