The market is down to the usual worries about inflation, energy cost, and uncertainty about the health of the economy. In addition, the 10-year treasury yield briefly hit a 6 month high. Even with great earning release from Apple could not overcome the sell off sentiment. It almost feel like the market psychology wants to fulfill the typical October decline.

With the market being oversold, there will tend to be a short-live rally. I anticipate it may rally tomorrow or Friday when the CPI report come out. After the quick rally, I anticipate the market continues to decline. I’m looking at the Dow may go down to 9900, Nasdaq down to 1920, and the S&P down to 1100. When these numbers are hit, the market should reverse.

This entry was posted on Wednesday, October 12th, 2005 at 11:46 pm and is filed under Market Recap, Stock Market. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.