Yesterday DOW had the worst session for the whole of this year. It fell by nearly 2 % , with Nasdaq Comp also closed in the deep red down about 2 %. The main reason for this sell off is the consume confidence index numbers for the month of April which came over the weekend. Although the numbers are above street expectations but they are lower as compared to March. This fall led to crashes in emerging markets as Brazil is down almost 4.5 % and Russia which was also down almost 4 % intraday but managed to recover a bit. We can this weakness all over th emerging markets today as Nikkei is down 2 % and so are Strait Times , Hang Seng etc. We can expect Sensex and Nifty to open gap down and then it may stablize at around 3050 level for Nifty and 10,400 for Sensex. These are the crucial levels to watch for today. I think we also manage to close down about 2% or so then it is ok , but if we dont see any support emerging at these levels and we close down much below than this then those are probably disturbing signs and we may went all down to test the recent lows made on 22nd May.
Quote of the day : "Do you have any idea how cheap stocks are now? Wall Street is now being called Wal-Mart Street." -- Jay Leno
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