The Market is Split

Wall Street ended higher as jobless claims dipped in-line with forecasts. S&P advanced almost 1%. In Europe the Stoxx600 fell 1.2%. Some Asian markets this morning are higher. Nikkei is flat after a 2.5% loss yesterday (Nikkei was up nearly 8% on Wednesday). 

China is also flat after ending down 1.2% higher as producer prices there fell for the 42nd straight month. USD was down, EUR rose while the GBP rose modestly. The Bank of England left policy unchanged. Oil overnight was up 3%, copper was a tad higher while gold prices climbed 0.7% off a 4-week low.

We saw a late sharp rally in India yesterday. Why? 

Maybe because there was no last 30 minute ETF redemption yesterday. Actually yesterday's ETF figure is nil. Banks led the pullback yesterday as well. Today SGX is indicating a flat start. 

The view is split down in the middle - between those who believe that we have started a fresh leg down and those who say that we are on the verge of another breakout. Time will tell. But as we discussed earlier, Nifty has formed a bottom (could be a short term one) at 7,540 levels. Its important that Nifty holds these levels in the coming weeks.