The outside markets were lower today in the wake of 1) the Chinese ¼ pt rate hike in their interest rates in an attempt to address their domestic inflationary pressures.. As of this writing, the Cash Dow was down 153 pts at 10,892. The Dow posted a 17 month high yesterday and last Wednesday at 11,100. This capped a 7 week, 1,189 point rally from the August 27th low at 9920. Certainly, a correction might have been over due for the stock indexes.
The dollar index was up 1.378 at 78.515. The Dollar has rallied 5.23 from last Friday’s 9 month low at 76.335 up to today’s 2-week high at 78.570. Gold backed off from its recent all time high at 1388. Today’s 1-week low at 1328 marked a 60 dollar haircut for those un lucky enough to buy the top. Finally, Crude Oil posted a 2 week low at 79.39 today, for a drop of 5.04 dollars in 8 trading sessions.
Expect further corrections and increased volatility in all the markets as the news from China is digested.
