Wednesday, February 4, 2009

US rally runs out of gas

Stocks closed lower today after the rally fizzled in the morning. After hitting 850, the SPX ended the day at 832 while the Dow finished at 7952. In Mumbai, the market continues to struggle higher after Monday's sell off. The Nifty closed at 2803 after trading as high as 2840 and the Sensex ended the day at 9201.

We might see some morning gains in Mumbai but generally I think the mood will grow increasingly bearish over the rest of the week as we move into the Saturn-Uranus opposition. SPX 800 may well hold on Friday, while the recent lows on the Nifty (2700) look safe for now.