Stocks in New York fell further today on the usual array of gloomy economic news. The Dow ended the day at 8282 while the S&P closed at 852. Indian markets also declined 3% as the Sensex closed at 9536 and the Nifty ended the session at 2848. Mumbai is closed for trading tomorrow so it will have to play catch up on the downside Friday.
My bullish prediction for the week notwithstanding, it's clear that momentum has shifted and we're likely headed down until early next week when we may form a temporary bottom. Even if we manage an up day tomorrow or Friday, we will still likely break below 8000 on the Dow and perhaps 8800 on the Sensex. While I have been stunningly wrong about the market this week, the silver lining is that the trend is down and that is still very much going according to plan.
