Market Meltdown Risk Increasing

The India stock markets crashed today (down 15% in one and 17% in another, before a retreat to 11% - 12% down) due to fear over re-regulation of the economy after the upcoming election, and thereby falling behind in the race with China for share of the world economy. We are still within Zoran's range before his final "T5" bounce, what Prechter would call a minor wave 2, noted in yesterday's post, so it is premature to say the US market will react to this beyond today's weakness. The India stock market meltdown, however, might be the beginning of a series of problems that eventually hit US stock markets, much like the Asian Flu in 1997. More generally, there is a growing concern over re-regulation of markets and pulling back from free trade worldwide. Given this is triple witching week, don't expect much clarity before Friday, except a marked increase in volatility.