US stocks rallied 3% today as optimism surrounding the impending Obama win boosted sentiment albeit on very weak volume. The Dow closed the session at 9625 and the S&P at 1005. Asian stocks also built on recent gains and closed up strongly with the Sensex finishing at 10,631 and the Nifty at 3142.
Although I had expected the early part of the week to be more bearish, this rally has not changed by basic outlook here. Look for a change in market direction tomorrow, perhaps as a result of a refocusing on economic fundamentals, or maybe because of political developements. A McCain win seems increasingly remote, so it seems that the most likely expression of the Saturn-Uranus aspect is the end to the neo-con worldview in the United States in the wake of a Democratic sweep. Whatever ends up happening, a significant decline is imminent. This will spread to world markets and will begin a leg down of about 10% over the next few days. In light of the extent of this rally, a retest of recent lows seems quite unlikely here. An early December retest looking more probable.
