How long will it last and
how far will it go … they’re the two key questions for
the rally which appeared to get underway last week, following the
dramatic decline in worldwide stock indices over the past two months.
Let’s deal with the bad news
first. As is so typical, Wall Street swapped Chicken Little for
Pollyanna and put on too much, too fast – going from extreme
oversold to short-term overbought in only three days as the venerable
Dow Jones Industrial index shot up
nearly five per cent.
The good news is that a day or three
of pullback might help with a cheaper entry point for anyone who
didn’t trust last week’s rapid turnaround.
One index displaying a distinct lack
of trust was the ASX 200 – and that always worries me.
The ASX reverted to short-term rally
mode ahead of Wall Street, once again proving its value as a leading
indicator. However, on Friday it slipped back again. And so did
the Nasdaq, having found its bottom a day earlier.
Regular readers know I regard the
combined behaviour of these two as a very reliable guide to what
is likely to follow on the other major stock indices.
In short, the lack of upside follow-through
from the Nasdaq and the ASX suggests a bit of price softness immediately
But that doesn’t necessarily
mean the end of the rally; just a need to be a little cautious before
getting sucked into Wall Street’s reversion to Pollyanna mode.
We won’t bother with the news
events of last week … the big sticks pulled out to whack the
shorts over the head, the implied threat the US Federal Reserve
will do whatever it takes to rescue a bankrupt financial system.
Kaye Shinker, who has done an enormous
amount of research on the Dow Jones Industrials, uses a May 26,
1896, chart for the DJI.
What is interesting about that chart
is that early last week, Saturn finished a three-hit square of its
natal Sun. Even more nteresting is that in the same week, Solar
Arc Saturn completed a square to its Moon.
In astrological terms, both of those
are biggies. Coming together, they represent a massive negative
And now they’re over. As Kaye
is at pains to point out in her Textbook For Financial Astrology,
when an aspect is over, it’s over!
That gives us some hope that the rally which started last week may
develop real legs, regardless of what’s happening with mundane
It would also help to explain why
the DJI, in particular, fared so badly during the slump from the
As the Saturn square Sun aspect became
exact in the DJI’s chart last week, still in the hangover
period from the mundane aspect of Mars conjuncting Saturn, the number
of new Lows recorded on the NYSE hit a record above 1300.
These new Lows spikes have, in the
past, coincided with significant turning points in the markets,
opening the way for a multi-week, or even multi-month, rally to
We may be in the process of seeing
that now. And I say “in the process” because several
other cogs need to drop into place before we can confirm that is
The danger comes from the fact the
mood of Mars may be lightening only temporarily as it moves to a
trine with Jupiter early next week. In early August, Mars will oppose
Uranus, and as I explained last week, that could set off another
This week, the Sun moves out of Cancer
and into Leo and Mercury will trine Uranus, so even if there’s
a day or two of backtracking or consolidation of last week’s
price jumps, we should not see an imminent repeat of the Chicken
Little “sky is falling” pessimism, just a bit of biffo
to stop Pollyanna being totally besotted with her million rainbow
There’s another highly-charged
astrological event happening before mundane Mars opposes Uranus
and it’s one that could have a significant impact on the DJI
– and, therefore, the other major Western stock indices.
The Leo New Moon is a total solar
eclipse. Eclipse events tend to be stronger along the path –
and that’s happening in China and Russia. Most of Asia and
Europe are on the outer edges of the path.
However, the eclipse will occur very
close to the DJI’s Jupiter and Ascendant. Jupiter is a benign
planet in the DJI chart. It enjoys a sextile with the chart’s
natal Sun and is configured in a close-orb Grand Trine with Mars
(very strong in Aries) and the chart’s
Since the eclipse takes place inside
the 12th House, rather than within the 1st, its impact may be less
However, we should remember our basic lessons … Jupiter in
the 12th is “guardian angel" symbolism and it, and its
Grand Trine which links public perception (Moon) and drive (Mars),
are about to be activated.
This is happening in roughly the time
period mundane Mars and Jupiter are active. I should also mention
that in Kaye’s DJI chart, Saturn is the only unaspected planet.
It is linked to both the Asc. and the
Midheaven, but makes no aspects to any of the other planets. An
unaspected planet can act like a rogue elephant simply because it
acts out in rather pure stereotype, unconstrained by the influence
of other astrological symbolism.
In other words, Saturn squaring the
DJI Sun and Solar Arc Saturn squaring the DJI Moon in the same week
was a profoundly negative hit on the DJI’s Lights.
But, we need confirmation of the turnaround
before we can be certain that we’re not seeing a short-term
head fake which collapses into another price dive down into the
Mars opposed Uranus aspect.
Technically, it’s a niggling
worry that neither the ASX, nor the S&P 500, hit price points
which might have boosted our confidence in the sustainability of
I mentioned last week both were very
close to a full, 50% retracement of the entire Bull run. Neither
of them hit it; they went close, but no cigar!
The DJI, however, did hit it, at least
on a closing price basis. Which leaves us with the question …
should we interpret the failure of the ASX and the 500 to hit a
key Fibonacci support level as part of the intermarket Bullish divergence
and, therefore, very positive?
Or do we exercise extreme caution
and wait for all the ducks to line up to protect our capital?
And to get our answers, we need to
turn our attention to the technical charts.
Dow Jones Industrials Daily [click
to view the charts and download the entire Adobe PDF file]
The Dow launched itself in catapult mode on Wednesday, finally starting
the rally we’d been anticipating.....CLICK
HERE to download the FULL version of this report with all technical
charts and further comments. (PDF format)
The World At Large is delivered in advance to Astrological
Investing Premium Member subscribers. Randall Ashbourne
is a former journalist and political strategist residing in Australia.
*QHT Technical Charts created using Quick
Harmonic Trader Software, by P.A.S. Astro-Soft, Inc. makers
of Galactic Investor Astrology software.
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