US markets remained in retest mode today as the Dow broke the 8000 level and closed at 7997 while the SPX probed lower and closed at 806. Asian bourses started the day in the red as the Nifty sank to 2635 and the Sensex to 8773.
It was an ugly day on Wall St, and the extent of the downside was surprising. While I had expected a Dow retest, I had hoped we would have been done with it yesterday. Tomorrow is therefore the probable reversal day. Depending on how low we go at the open, the strength in the afternoon should push prices in New York significantly higher.
