Markets in New York were volatile but ultimately negative today in the wake of this morning's coordinated 50 point rate cut. The Dow closed down almost 200 points to 9258 while the S&P 500 lost over 1% to end the day at 984. It's clear that the sentiment is sufficiently negative that not even an across the board cut from the Fed, ECB, BOE, and other central banks around the world spurred investors to believe in the immediate viability of equities.
For the past several weeks and months, I have been writing about the likelihood of a major decline in the second week of October and so far that prediction has been fulfilled as the Dow has broken decisively below 10,000. However, I had reserved a special place for the end of this week, particularly for October 9th. According to my understanding of the planets, this time window showed the greatest potential for a sell off. The Sun is moving under the influence of Rahu while conjoining the natal Saturn in the USA chart. Tomorrow morning, the Moon conjoins the natal Ketu of the USA chart. Previously I had suggested that a worse case scenario had been 9000. I now think I was being overly conservative in order to avoid seeming alarmist. While I had thought we would be retesting the 2002 lows of 7500-8000 by November, it's very possible that we might see those levels as soon as tomorrow or Friday. So will this crash actually happen tomorrow? Yes, it could although I acknowledge a margin for error that extends over the weekend to next Tuesday (the US markets are closed Monday). Alternatively, it's also possible a full blown crash may be averted for a few weeks until November and we may only see another big down day on the order of 5-10%.
