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World stock markets remain trapped within a Bear market which currently seems unlikely to finish or find a final “bottom” before 2010 at the earliest.
It remains uncertain whether the final phase of the Bear will be a multi-year period where most Western indices will endure a long, grinding sideways pattern – a range-trading period – or whether another deep, crash-like downleg will wipe almost another 50% off the current value of the Dow Jones Industrials and the S&P 500.
The secondary trend appears to have changed from November 21st, 2008, and is now probably close to ending the first leg upwards for markets to reclaim what should be a significant proportion of money lost during the crash that started late in 2007.
July should prove to be a significant month and I am anticipating a key reversal no later than mid-July. At the moment, it appears as if the July dates will signal the reversal of the secondary trend from countertrend Bullish back to Bearish, in line with the primary trend.
The short-term trend is showing weakness and the need for a corrective phase downwards to enable a multi-month, cyclical Bull rally to get underway.
Initial earnings reports are somewhere between sombre and bleak, but for reasons gone into in some depth in the section on astrology, below, will soon begin to surprise on the upside.
Briefly, it has to do with Jupiter’s release from Capricorn and his move into Aquarius, in mutual reception with Uranus. A planet in mutual reception is unable to act negatively in any area ruled by its host – and since company earnings are Aquarian/Uranian, it means any “surprises” must be to the upside, rather than to the downside.
Since this is the last World At Large report, I am including a list of key dates for the first half of the year.
These dates are likely to coincide with key reversals in stock markets during the first half of this year.
At this stage, I am anticipating that a secondary trend change started last November 21 and, despite its slow start, has the potential to continue rising into the July timeframe, with the normal relatively minor pullbacks along the way.
On a technical basis, it will be necessary to give rapt attention to the pullbacks and to remember the rules of engagement … corrections should be only of first or second degree – 1 to 4 days or 7 to 12 days. Anything longer than 12 days down, in total, means a larger, cyclical move is underway.
The following section on the astrological conditions is quite long. In fact, it is the sort of in-depth analysis I really ought to have conducted last year. My apologies. I was too swayed by the idea that the normal decennial technical pattern was developing and did not give due attention to the fact that a Great War Of the Gods was getting underway – a pattern which develops every few decades and has a massive impact, especially on the USA, its stock markets and its society.
Astrological Analysis ( The following section of this World report has been posted as a separate article on the Articles page as War of the Gods)
The most significant astrological event this year is Jupiter’s sign change from Capricorn to Aquarius.
While there is often a short-term pullback associated with Jupiter’s sign change, the important changes are much longer lasting and relate not just to a change in the style of expansionary energy that becomes apparent, but where that change will show the most substantial impacts – both positive and negative.
During Jupiter’s transit of its primary home sign, Sagittarius, stock markets around the world went into a blow-off, since the combination of the two symbolises exaggerated expansion. It reached a peak as Jupiter conjuncted Pluto in late degrees of the sign.
As astrological symbolism, Pluto exemplifies the capacity to blow things out of proportion.
But, as the two planets shifted signs into Capricorn, the bubble burst. Excessive optimism was abruptly replaced with extreme pessimism and fear. Again, Pluto’s presence blew things out of normal ranges.
When the Jupiter/Pluto changes coincided with the approach of a long-running series of five oppositions between Saturn and Uranus, which has natural rulership of stock markets, the combined effect produced one of the worst years in stock market history – a year in which multi-decade records were swept aside during a dramatic plunge of frightening speed.
Pluto’s transit of Capricorn will continue for years. The very fabric of government, of nations, of corporations, will be torn down, beaten up and, eventually, be rebuilt to rise from the ashes like a recharged Phoenix. That is the nature of Scorpio and Pluto, its ruler.
The Saturn/Uranus opposition series also continues for years – and as it progresses, it will morph into an immensely powerful and, in this case, destructive T-square involving Pluto, of whose power to blow events out of all proportion to the underlying reality we have seen only the first taste.
So, there appears to be strong supporting evidence from the astrological conditions unfolding over the next few years to back up the technical evidence which suggests we have entered what I referred to last year as The Doomsday Scenario.
It is not the end of the world, but it is likely to be the end of the world as we know it.
Let’s not get ourselves too frightened by that concept because we get that every year. The airplane changed the world as our grandparents knew it; so did the computer, the Internet, music downloads in MP3 format … and the iPhone.
Constant change at a fast pace comes in waves … waves that are related to the long-term cycle changes of the outer planets.
We are at the start at one of the great periods in the reformation of human history. The world is changing; it will change very fast; and it will change dramatically – and be far more widespread than at any other time in history, if for no other reason than the sheer numbers involved, in terms of both nations and populations.
To get some grasp on the Who? How? When? Where? and Why? we should, perhaps, return briefly to the old Greek myths.
The story of the Gods of Olympus is, above all else, a creation tale.
In the beginning, all was turmoil and toxicity. There was Uranus, the sky god, and there was Gaea, the earth mother.
Uranus lay down with Gaea and in a relationship considered incestuous, produced 12 offspring known as the Titans. Unsatisfied with his creations, Uranus kept the Titans locked in Gaea’s womb, which produced great strain and pain for the earth mother.
According to Hesiod in his book, Theogony, the youngest was Cronus (Saturn) and he was the most wily, the most ambitious, the most terrible of her children. Yet, it was to Saturn that Gaea turned for help.
He used a sickle to castrate his father and seize power. Replacing one weirdo dictator with another did not, at first, lead to any improvement in the condition of the world.
Saturn produced his own series of offspring with his Titan sister, Rhea, but, fearing one of them would turn against him as he had against Uranus, he swallowed them whole. The only exception was Zeus (Jupiter), whom Gaea protected by giving Saturn a stone wrapped in a baby’s swaddling.
When Jupiter matured, he concocted a potion with Gaea’s help, forcing Saturn to vomit up the rest of the children – who then divided into two groups to wage war for control of the world.
Neptune, Pluto and various other players joined up on Jupiter’s side to wrest control from Saturn; most of the losers were condemned to the underworld, Tartarus, and Pluto was given domain over the underworld to keep these “evil” forces from breaking free.
We can see then, from these old myths, that the forces and power symbolised by Uranus, Saturn, Jupiter, Neptune and Pluto lead to great clashes which change the very nature of the world around us.
We can also tell from the interrelationships that Saturn does not have a happy relationship with the other four Gods.
And so, it is to these old tales we must turn for guidance on reading the symbolism of the developing astrological aspects between these planets.
Pluto has the enormously destructive power of the “evil” imprisoned in Tartarus at his beck and call – but, ultimately, falls under Jupiter’s will, so the effects of the use of the power must eventually morph into something benefic and productive.
It is why we associate Pluto with complete destruction, followed by rebirth. The “evil” power is unleashed to tear down anything and everything which stands in the way of a total makeover. It is the tale of the Phoenix, which must be burned to ashes before it can be reborn.
The other component of the Greek myths we need to take into account when trying to get a sense of why our world seems to be being turned upside down is the nature of the signs.
The most active of the astrological signs are the Cardinal ones … Aries, Cancer, Libra and Capricorn.
Cardinal signs initiate action – and when they’re stirred into action, the effects can be very wideranging and far-reaching, especially in terms of the symbolism of the sign involved.
Pluto’s previous transit of a Cardinal sign started in the early 1970s in Libra. It changed the world irrevocably, especially in terms of all close one-to-one relationships. Marriage as an “institution” would never again have quite the same compulsion as it did in earlier centuries. “Living in sin” underwent a social reformation and “partnership” started to replace more formal marriage, without much of the social disapproval that had previously applied.
Given that Libra is a feminine sign, under the rulership of a Venus interested in equality and fair play, the Pluto transit here also gave rise to a reborn drive for women to reclaim a position of “power” in “society”.
Pluto’s symbolism is very closely related to “power” and Libra, as a sign, relates to “society”.
So, when it comes to Pluto’s current transit of another Cardinal sign, Capricorn, we know that great shifts in the balance of power are going to emerge as a central theme.
We know that all the time-honoured “institutions” that are Capricornian in nature will be torn down and remade in a form that makes them almost unrecognisable from what was there before.
And, given that it’s Capricorn, we’re talking about some really big institutions. Government, nations, national borders and restrictions, corporations, the power “elite”, even the police … all these fall under Capricorn control.
Now, how do you think the most wily, most ambitious, “most terrible” of Uranus’s children is going to feel when he realises the God of the Underworld has broken out of Tartarus and unleashed his “evil” forces on all the institutions Saturn has spent so much time and effort building to give himself the semblance of some autonomy from Jupiter?
Just a wee bit miffed? Perhaps a tad threatened?
And while he’s squaring off against Pluto, he’s still engaged in the Uranus opposition series. A war on two fronts is in the process of being opened up.
And it doesn’t all come to a head until the second half of 2010 … by which time there is a massive Cardinal climax of battles.
By that stage, Saturn is in Libra, facing off against Jupiter and Uranus in Aries … with Pluto in Capricorn.
In mythical terms, we have a repeat of the Great War Of The Gods which took place way back at the birth of the modern world.
Jupiter will have joined his grandfather, Uranus, in the war sign of Aries … his brother warrior-at arms, Pluto, is engaged in, quite literally, a scorched-earth raid through Capricorn … and in the far corner, Libra, where he has some essential dignity, is Saturn, locked in a fierce battle for power and control with his original enemies.
Given that it’s Libra, and that he can muster both dignity and diplomacy from such a position, Saturn will, eventually, sue for peace – and on reasonable terms.
Jupiter will, after a time, take off his armour and embrace Venus in the stable, productive and fertile sign of Taurus, to sow the seeds for a harvest fertilised by the blood of war.
Between now and the start of 2012, however, we may have to survive a conflict of, quite literally, Greek mythical proportions.
Jupiter’s relief role for the first half of 2009
However, we should be pleased to know that Jupiter’s entry into Aquarian territory is likely to provide us all with a brief respite from the horrors of 2008 – and before the Great War Of The Gods enters a new phase.
In astrological symbolism, we associate Uranus and the sign Aquarius with innovation and breakthroughs, especially anything related to high-end technology and computer equipment … in fact, the whole tech sector.
But, it has a more traditional symbolism. As the 2nd House of the 10th, it rules company profits.
Uranus/Aquarius rules surprises, shocks and the unexpected; Jupiter rules expansion and growth.
We should not therefore, actually be surprised when numbers start appearing in the next few months showing a “surprise” turnaround in company profits and earnings.
This is the current talk of Wall Street and the talking heads on television – that the recession will be over as we enter the latter half of this year.
Indeed, Jupiter’s removal from Capricorn, where it has escalated the fear levels to historic highs, does allow for a dramatic easing of financial tensions. His entry into Aquarius emphasises the sort of “New Deal” innovations likely from The Obama Ascendancy will produce a period of respite from the turmoil.
The talking heads and the commentariat will pronounce the death of the recession and the birth of a new Bull.
I really don’t want to mix up ancient Hebrew religious mythology with the Greek, but it does have a nice little tale about what happens when everyone starts dancing around, singing the praises of Bullish idols!
In a natural zodiac, Sagittarius and Aquarius are sextile to each other. In short, they are not such dissimilar energies that they cannot co-operate with each other.
With Jupiter in Aquarius and Uranus in Pisces, the two old Gods are in mutual reception. This is like two Kings visiting each other’s domain.
The effect is compounded because the primary ruler of Pisces, Neptune, is also currently in Aquarius.
We have then a situation where all three are constrained in how they act and what they can do. One King can’t make ructions in another’s domain while his own domain is playing host to his host.
Just to make this clear – while these three Gods are in mutual reception they lack almost any power to cause harm to the symbolism characterised by the other’s sign rulership. They are relatively free to act in benign, useful, charitable ways.
And just before Jupiter enters Aquarius, Saturn went Retrograde, which should aid considerably in producing a temporary lull in the developing Great War Of The Gods.
Therefore, with Saturn becoming less direct in his ability to restrict, to limit … to be a hard-nosed, hardball party-pooper … the conditions are ripe for a stock market rally which could surprise everyone by its strength and reach.
We could see surprise growth in the tech sector, a turnaround in company profits that shocks everyone, and a growing optimism that we’ve found “a brave, new path” to salvation.
Students of Kaye Shinker’s Textbook for Financial Astrology will already be aware of Kaye’s breakthrough research relating to what I usually call the Jupiter Square Theory.
Kaye’s thoughtful analysis of Jupiter in Aquarius is available on the website. A central tenet of Kaye’s work in this area is that the sign through which Jupiter is transiting will experience an abundance of supply.
She says: “Aquarius rules science, research, spaceships, satellites, communication devises, and airplanes. Picture these in abundant supply and, therefore, cheap.”
The law of supply and demand stipulates that when there is more supply than demand, prices fall – and so do the profits of the companies which produce the supply.
Under this theory then, any company producing goods ruled by the sign Jupiter is transiting is likely to suffer share price falls because profits are falling.
In short, Jupiter produces an “excess”. We were wondering, as Jupiter began its shift to Capricorn, just how this “excess” would manifest, because we were discussing how there could be “too much government”, “too many corporations”.
And wowie! A year of unprecedented government/official authority intervention to shore up the world’s financial system and stock markets; governments stepping in to shut stock markets down; stepping in to bailout failed banks and corporations; burning the midnight oil in emergency sessions to pass urgent legislation.
“Too many” corporations and banks going to the wall, being swallowed whole by competitors – in a weird reflection of Saturn swallowing his own babies!
So, while it takes an almost huge leap of faith to wonder just how Jupiter might display this “excessive” tendency in Aquarius, we know exactly what happened during his not-so-distant transit of Sagittarius in conjunction with Pluto … and how that huge bubble got instantly deflated when the duo shifted to Capricorn.
Another central tenet of the Jupiter Square Theory is that those goods produced under the symbolism of signs square to Jupiter’s current transit will be in short supply – and, therefore, prices will increase, along with the profits of the companies which produce them.
This is where the huge leap of faith is required.
But, before I come to the square signatures, there is another vital element of Kaye’s work which needs to be understood. And it is this … that the most striking effect of the Jupiter transit occurs as the planet is moving forward within the first 15 degrees of the sign.
From Aquarius, Jupiter squares Taurus/Scorpio – the signs which rule the entire banking, insurance and financial sector; the sector which went into worldwide meltdown.
And here’s the leap … Jupiter in the sign ruling company profits will produce a surprising turnaround in balance sheets, and especially of all firms still surviving in the financial sector.
One other aspect of “shock/horror/surprise”
could be an unexpected outcome in terms of technology companies
… the Nasdaq sector.
Mutual Reception between planets removes the power of a “King” to do damage
We need to be aware then, because of mutual reception and the inability of a King to cause damage while visiting a domain when its King is enjoying a reciprocal arrangement, that the positive “exciting new breakthrough” component may well overshadow the implied negative of falling technology profits.
We should all keep this in mind when looking at the Nasdaq, especially for the first half of this year, because it is extremely likely that some companies are going to break out on a surprise ride higher, on the back of exaggerated expectations of great profits from innovations.
Kaye also says: “Stuff ruled by Leo, the sign opposite Aquarius, will also be in abundant supply. For example: entertainment, casinos, and gold.”
The Jupiter opposition sometimes produces a shortage, rather than an abundance. Or, perhaps, we should say a perceived shortage.
Opposite Capricorn is Cancer, the sign which has general rulership of food. Remember last year when the price of food went through the roof? When rice prices went so high alarm bells and warnings of dire catastrophe facing the world’s poor had the United Nations in turmoil? When rice was so high the Japanese started giving away all the (to them) inedible rice they’re forced to buy from the United States in return for shipping cars and plasma televisions?
Gold, of course, never was and never will be “abundant”. If Jupiter produces a surprise turnaround in company profits and we get a surprisingly strong stock market rally – and both of these should be in our mindset for the first half of 2009 – gold prices may well drop.
But, that will be merely a lull.
When the Great War Of The Gods resumes in earnest, stocks are likely to go into another, perhaps even worse, freefall and the demand for gold, physical gold, will send price of the metal, and share prices of the miners, into the stratosphere.
These great wars occur roughly every 60 years. Not all of them take place in Cardinal signs, where the effects are more dramatic.
But the Cardinal signs were activated in the 1930s. Before that similar arrangement involving Saturn, Uranus and Pluto, there had been one during the 1870’s.
The following excerpt is courtesy of Wikipedia:
The three were also waging war with each other in 1965, although at that time Uranus and Pluto were conjunct. It happens to be the year the USA officially sent combat units to Vietnam. In the 1870’s, it was combat units to Panama.
We get some idea then from history that we are seeing only the start of a period of massive social, financial, political, and diplomatic turmoil for the United States, in particular.
Someone far more skilled than I really needs to write this history – and it needs to be made compulsory reading for Presidents as these periods approach.
Because it is quite clear from Wikipedia’s description of the 1870’s that this is not “a slow learner” … this is a “no learner”. The same mistakes are allowed to run totally out of control and wreak massive social and financial damage over almost a decade before they’re resolved.
Will it be “different this time”? History tends to suggest not. At the end of 1965, Wall Street crashed, slowly recovered over the next couple of years – and crashed again.
Supposedly, the USA learned the lesson during the 1960’s that it is not a very good idea to put a large number of ground troops into a combat zone where guerilla-style warfare is being conducted by the enemy. That “lesson” and all the books written about changing styles of warfare were forgotten – even with the even more recent lesson of the Soviet experience in Afghanistan.
The 1960’s were also, of course, a period of massive public division in the United States – as were the 1870’s and the 1930’s.
Had anyone actually displayed even some vague semblance of avoiding the previous mistakes as this Great War Of The Gods rolled around again, one might hold out some hope of avoiding the Doomsday Scenario, but it’s all the same old same-old … military combat, credit running out of control and causing a financial collapse, and massive social division threatening to rip society apart.
It’s as if the American Presidency and the American Establishment are nothing but puppets jerked around by the old Gods of Olympus who can’t believe these suckers have thrust themselves into another Greek tragedy where the players change, but the lines don’t.
It is actually pathetic, in the proper sense of that word, as well as in the more pejorative, modern sense.
Saturn’s role … revision and a chance for redemption
The second most significant astrological event for the year is the continuing role of Saturn in this high drama.
As the old year departed, Saturn turned Retrograde, providing some temporary relief – and a revision of all the areas it touched on during 2008.
In a personal chart, a planet Retrograding across a personal point or planet is viewed in this way … the first Direct pass presents the problem and we begin trying to come to grips with it; when the Retrograde across the point occurs, it gives us the opportunity to look at the problem in a new light and to review whatever solutions we’ve started to put in place to try to ameliorate the problem.
If this second step is successful, the third pass – again Direct – tends to see us actively moving forward again, as the solutions we put in place begin to have real effect and impact.
If the second step is stuffed up … the 3rd pass brings the roof crashing down on our heads.
The problem with this Saturn-Uranus series is that it’s a rare 5-hit passage.
Undoubtedly, the Obama team has been working on its own plans to try to rescue the situation and will already have begun reviewing the ad hoc responses hurriedly cobbled together by the Bush White House, the Bernanke Federal Reserve and the Paulson Treasury as they were continually enveloped by a new wave as the crisis unfolded.
Since the President-elect will officially become President on January 20th, virtually the entire world will be hoping to see a comprehensive plan of considered responses, rather than the mere crisis control measures forced on the incumbent team by the speed of the downturn.
And since Saturn makes its next exact hit to Uranus in early February, it seems not unlikely the world is not going to be forthcoming with unreserved praise for the first initiatives from Team Obama.
Still, there will be time to perfect the initial agenda before Saturn makes its next hit in mid-September. The word “perfect” is apt here … since Saturn is a very rigid task master and when it comes to perfectionism, no-one can ever quite match a Virgo’s expectations.
The difficulty will be long-running, because late this year Saturn will move into Libra, initiating the T-square configuration – and dramatically upping the ante by engaging Pluto directly.
In the midst of all this big-picture turmoil, we get a year with four Mercury Retrogrades plus a Venus and Mars Retrograde … and a late January Solar Eclipse, just to ensure that Aquarian themes of shock/horror/surprise continue for many months!
The eclipse, at 6 Aquarius, will occur on Australia Day, January 26. Mars will enter Aquarius on February 5, the same day Saturn opposes Uranus.
By April, Mars will have moved along to be conjunct Uranus and opposing Saturn … before it shifts into its primary sign, Aries – and triggers the developing Saturn/Uranus/Pluto T-square.
Venus will give us a taste of the T even before that, since she goes Retrograde in Aries in early March and decides to have three hits of her own at Pluto!
Mercury starts its first Retrograde of the year at 7 Aquarius – just to add some extra oomph to the Solar Eclipse point.
About the only potentially positive symbolism of this Aquarian overload is that it is taking place literally in conjunction with Jupiter – so we’ll all be hoping he’s feeling very benefic after being released from a year in Cappy captivity!
This then, dear reader, is the year we face … a period in which there is great strife unfolding between the Gods of Olympus.
It begins with hope that a brave new path can be found to avert disaster.
The reality is much more likely to be less than ideal.
Because, to be very, very blunt and just a tad uncharitable, that, too, is Aquarian symbolism. Aquarian/Uranians often have extraordinarily high ideals – as well as the extraordinarily stubborn will to push them through.
The finished product, however, tends to be less than ideal.
A little, in fact, like Titans … creatures which seemed like a fine idea at the time, but had to be pushed back into the womb from whence they came because they were too mad and too bad to be let loose upon the world.
All of this does not fit neatly into today’s scientific world. Superstitious tales of silly old Gods from an ancient civilization.
Doh! As Homer Simpson might say. A few years ago science thought space was a void. Now we know that it’s not and that it’s actually filled with “something” we can’t yet quite define. Science used to completely dismiss the very idea that planets could “cause” anything. And now we know that when they’re in certain alignments they have a dramatic impact on solar activity.
Yes, the Greek tales are old. It is interesting, nevertheless, that our ancestors understood enough to know that the original world was a toxic turmoil … and that it needed time (Cronus, or Saturn) to arrive, beauty and fertility to be born (Venus) and for growth and expansion (Zeus/Jupiter) to evolve.
And in the tale of the birth of Venus,* they also showed an appreciation that “life” on “earth” actually emanated from the oceans. There are great truths and great wisdom to be learned from those old Greeks and to dismiss it all as superstitious nonsense merely because our understanding of the world is more Mercurial and less romantic is hubris. There was a time when hubris was the only sin the Gods could not condone.
Dow Jones Industrials
While we are still waiting for the MACD on the DJI to show any signs of turning, the deceleration of the downtrend is reasonably obvious from the state of the candlesticks, with three distinct tests of the lows of the previous Bear.
For the first time in several months,
it appears as if we may achieve a month where prices return inside
the Bollinger Bands.
Similarly, the Stochastics signal hit its lowest point many months ago – last June. We can see that when this occurred during the previous Bear, the markets had still to hit the final price bottom, but the signal did signal the start of the recovery.
The weekly chart has all three indicators now on Buy signals – and the red CCI line has managed to get above Zero for the first time since the recovery rally in the first half of 2008.
The faster, blue CCI is looking a little peaky and is indicating a short-term correction which should not last longer than a couple of weeks.
Remembering the point I made earlier about the length of trends, this correction should not last more than 12 trading days.
The first Fibonacci retracement level – 23.8% at a price of 9043 – has already been tested twice and the next rally should easily push through that level to challenge the next zone – 38.2% at a price of 10,037.
A 50% retracement of a Bull campaign is relatively normal for recovery rallies – and that’s at 10,833.
The 61.8% level is next – 11,625 – and if the DJI can break that and hold it for more than a week, we are most probably not going to see the Doomsday Scenario of a multi-year Bear.
S&P 500 Monthly
This is a very similar picture to that of the older index and for the first time since the Bear began, we have some signs that January might return a higher MACD histogram.
The first Fibonacci retracement level is 940 –
a price touched this past week for the first time since the post-election
If, as we suspect, Saturn’s Retrograde and Jupiter’s sign shift improve the potential for a rally which goes into a multi-month cyclical phase, the 1150 level seems to be quite achievable by mid-July when all the signs are for another significant trend change.
While none of these charts include the data for Friday’s trading on Wall Street, one day’s figures will make virtually no difference to what these charts are telling us about the potential for the next few months.
S&P 500 Weekly
Again, the slimmed-down Santa Claus rally was enough to turn the MACD histograms positive for the first time since early last year – as well as getting a Buy signal crossover from the MACD signal lines.
The index has returned to, and is now easily maintaining, the long-term positive divergence line on the CCI and the red line is now peeking back above Zero, with improving Stochastics.
The blue CCI confirms the potential for a short-term corrective phase, but the overall improvement in the state of the red line is fairly dramatic.
Nasdaq Composite Monthly
The Nasdaq may also close January back inside its Bollinger Bands – with Buy signals from the CCI and the Stochastics.
We have no sign yet of a Monthly Buy from the MACD – but we are getting encouraging signs of a what could be the first shrinking MACD histogram.
This past week also saw the highest price level for the Composite since the US elections. The index hit 1665.63 on Tuesday … 1665 being the exact level of the first Fibonacci retracement mark.
The other Fibonacci levels, in rising order, are: 1893, 2077 and 2261.
The weekly of the Nasdaq Composite shows a similar pattern to the two other major Wall Street indices – all indicators on Buy signals, including the first positive histogram since midway through last year.
Note that there is a gap in the weekly bars on the Nasdaq – and this should be the very minimum target for the rally which appears to have started in late November.
Depending on the strength and speed of the rally, the 2077 level seems achievable.
However, one can see that the 61.8% retracement at 2261 could be difficult to reach, since the index will run into downtrend Resistance before getting that high.
Randall's charts included in this report were created using the Quick Harmonic Trader Software, by P.A.S. Astro-Soft, Inc. makers of Galactic Investor Astrology software.
Randall Ashbourne is a former journalist and political strategist who trades the Australian market..
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