US stocks fell sharply on increased jobless claims and poor earnings. The Dow ended the day at 8695 while the S&P stood at 904. Today's decline began in Asia, as Indian markets also lost another 3% as the Sensex finished trading at 9734 and the Nifty at 2893.
So far, this most recent move down is fulfilling our expections for a negative week overall. Tomorrow's trading should be another negative day both in India and the US, although we may see the intraday low occur at some point in the middle of the day rather than at the close, as we've seen lately. 2800 on the Nifty is very possible, and 850 on the S&P is a sort of worst case scenario, with an 880-890 close perhaps more likely. It may be a good day to consider covering shorts with a rally possible sometime next week.
