New York was up most of the day but only broke even at the close. While I had thought we might be more negative today, this sell off at the close is a bearish indicator and creates the conditions for more declines this week. While next week's market is more likely be the capitulation that some have been waiting for, I would be guardedly pessimistic here. A close below 11,000 next week might be the buy signal that some traders are looking for before they get back in.
Bombay looked very weak Monday and closed down over 2%. The BSE is vulnerable to very large drops if there are any significant down days in New York, such as may occur tomorrow July 1. The BSE may have more strength Wednesday and Thursday, however as the Moon-Venus-Jupiter aspect perfects on a potentially significant natal point. But that may only put off the inevitable decline under 13k on the Sensex next week.
Tokyo was down only modestly and closed at 13,481. The Nikkei is likely to finish above 13k this week and perhaps closer to break even which would be a victory of sorts. I think most of the bearishness will hit next week.
As predicted, the Euro sold off almost half a cent today and closed at 1.5744. A flat week seems to be the best one can hope for.
Oil and Gold were largely unchanged, although Oil did reach another high this morning hitting above $143. I still think Oil has a ways to go here. I am less certain about Gold.
