Dow and other market indices down this morning and could retest its Friday lows.

Some market watchers have been calling for a significant decline for months and even they were likely surprised by Friday’s market route. I’ve been saying that I believe the market is entering a more vulnerable stage. 

News of a new COVID-19 variant out of South Africa sending tremors through the markets in the U.S. and internationally. 

In yesterday’s update, I mentioned that early December could bring some volatility and correction to the market, but it looks like that might be starting early, helped by concerns about rising interest rates. 

It would seem with the re-nomination of Fed Chair Powell to another term that growth has been dealt a serious blow. 

This summer we were hearing calls for a 10–20% decline in the market, but it seems the timeliness of those calls has since passed. I think December could be a vulnerable period for the market, because… 

I’ve revised my ultimate Dow target to 45,000 for this bull market cycle. This revision was based on a number of factors… 

The book, “Dow 36,000,” was published at an untimely point in September 1999, just months before the infamous tech bubble and the dawn of a bear market that would continue until early 2003. 

The Dow moving above the 36,000 level and breaking into uncharted territory. My revision for Dow’s ultimate target is now 40,000. 

Biotechnology one of the better performing sectors in yesterday’s trading. I think there’s a couple of reasons for that…