The Bears Rule

The markets since I last wrote have been in a swing .....up down up down. But what happened on friday 20th June was what I had been expecting for some time, though not entirely for the reasons it happened. The trigger was the Inflation figure of 11.05. But what will follow in the next downtrend should follow what I have been saying so far. The US is not having a great time and if you look at one of my earlier posts on Forexpredictionstoday (http://forexpredictionstoday.blogspot.com/2008/03/quite-in-line-with-what-was-being-said.html) I was talking of the Dow breaking the 12,000 levels and a slippage of the BSE below 15,200 simultaneously. Now that the same has happened convincingly (after testing it for a couple of days) and at the risk of sounding pessimistic, I go back to my forecast of a 13,400 to 13,800 for the BSE in the very near future. The only saviour can be some godsend like some good news on the Inflation front (single digit even if it is 9.99) or a renewed interest of Investors in a more affordable market. That I may be proven to be wrong (and I pray for the same) may be because no government/regime wants to be in a negative growth pattern and will strive to do all to reverse it. But then one look at the negatives in the markets and the gut feel comes..... It may be difficult to get out of the rut in a hurry. Any revival may take months to come. As of now...the Bears Rule.