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The S&P 500 has come back inside the symmetrical triangle, but has failed – so far – to overcome the first horizontal hurdle posed by the lower High recorded on October 20th.
Breakout, or breakdown, now probably hangs on the USA election outcome.
When we come to the charts in a little while, we’ll examine the technical indicators – as well as potential price targets which could stop the rally, or provide important Support in any temporary decline.
It is now a question whether last week’s snap rally was end-of-month window dressing by mutual funds anxious to cook their books.
Astrologically, Uranus, which has effective rulership of stock markets, is being hit from all directions.
Wall Street closed out the week as Mars trined Uranus, after the “action” planet conjuncted the midpoint of the Jupiter/Saturn trine.
Uranus is receiving the long-running sextile influence from Jupiter … will be hit by a square from Venus as Saturn is approaching the first of 5 oppositions … and mid-month, will be fired up again by the Sun repeating the Martian trine.
Then, of course, in the first two weeks of December, the Sun, Mercury and Mars will all repeat the T-square formation.
In short, Uranus is getting smooched and whacked in repeated patterns over a relatively tight time frame.
That is not to say we will not have a continuation of the recovery rally which should run out to a cyclical period of 60 to 90 days.
Unfortunately, we have arrived back at the position where that is not as near certainty as one could expect from historical patterns and technical conditions.
Saturn represents conservative values and Uranus symbolises radical reform – and it’s these two things which clash in this week’s Presidential elections. Uranus is also renowned for its Shock! Horror! Surprise! factor.
Probably the biggest shock surprise of the coming week would be if this whole astrological set-up turns out to be an anticlimactic non-event!
That, after all, is the least likely outcome.
By now, one imagines the market has already priced in the strongest possibility from the polling – a Democrat Party sweep. And it doesn’t seem unduly upset at the prospect.
The potential for a “surprise” could be a shock Republican turnaround.
The one that could really rattle the markets is an uncertain outcome – perhaps where Senator Obama wins a majority of votes nationwide, but where Senator McCain appears to have narrowly captured enough States to take the electoral college vote.
As to various indices, we have divergence … and it could be Bullish or Bearish; we have technical conditions pointing in a similar direction.
The potential scenario I outlined with last week’s “spooky” charts has not panned out. Pity, because it would have given us a pretty sure thing for this week. What we have is …
Dow Jones Industrials [click for complete printable PDF report including all charts]
All technical indicators suggesting we have hit what should be a medium-term bottom.
The DJI did not break October 10th spike Low last Monday, although it did go close to doing so.
It has recaptured the underside of what had been the bottom edge of the triangle and has now poked its head above the lower High recorded on October 20th.
If it continues rising, the next target is the October 14th spike High at 9924 … and then the horizontal resistance at 10,266.
Now, while the DJI and the 500 did not break the October 10th spike … other world and American indices did.
I’m unwilling to call it Bullish divergence because it normally works the other way.
Last week, we looked at some long-term planetary price influences on the way the DJI moves … and the fact Uranus is being triggered by every other planet from the Sun to Saturn dramatically increases the chances of its price lines being hit during one of these aspects.
DJI Planetary Aspect Price Points [click for complete printable PDF report including all charts]
But, it’s now going to take a relatively fast and sudden move – in either direction – for the price to line-up with the planetary action in the next two days of trading.
These planetary price crossings have impact only if they are hit on the same day as the aspect becomes exact.
If the price closes decisively above or below the price crossing, the trend will usually continue moving in the same direction.
If the price hits the crossing point exactly, or breaks it only marginally, and is then repelled away from it, it usually changes the prevailing trend.
In other words, if the market is going up, hits a price crossing and starts to slump badly, the trend is changing to downwards … and vice versa.
So, in this case, the price really needs to break through the 10,120 area – and pretty strongly. If that happens, the odds are pretty good it’ll stay in the direction of the light green Sun line and reach the 10,886 level of the following week’s Sun/Uranus trine point.
We’ll have another look at the 500’s chart from Page 1 … because it shows the uncertainty of the immediate direction more clearly than the DJI.
It has not broken out to the other side of the symmetrical triangle. Not yet. It is also leaving bars hanging by a thread as it nears the price of the lower High on October 20th.
As we can see, it is continuing to hold to the positive divergence line at the red CCI troughs … the Stochastics are on a Buy … the MACD histograms are growing … and the MACD signal has given a positive crossover.
The indicators are suggesting the rally will continue, after a day or two of possible indecision.
But, the price has not yet overcome any major resistance, of either a horizontal or diagonal nature.
S&P 500 Planetary Price Crossings [click for complete printable PDF report including all charts]
The 500 is climbing a Sun line.
This Sun line is not part of this week’s T-square action. It’s a non-mirror line. I’ve distinguished the T-square formation by giving Venus, Saturn and Uranus “dotted” lines.
If the 500 can break through this formation, there’s a strong chance it will not run into any further major trouble until the Sun/Uranus trine at 1070 the following Monday.
And if it breaks through that one, it could stay on that Sun line even longer.
Venus is the threat here … that’s a 1st Harmonic line coming down, the strongest of the planetary price lines.
If the 500 rises to 1010 on Monday/Tuesday and cannot get through, great caution may be warranted with Long positions.
Before going to Europe, we’ll take a look at the ASX 200 [click for complete printable PDF report including all charts]
This is one of the indices showing significant divergence from the DJI and the 500 … having gone to a considerably lower Low last Tuesday.
This chart is a little bit messy because there are some downtrend lines and horizontal resistance lines in there with the BB’s.
The signal lines in all three indicators have turned to Buy, with the MACD finally giving a signal.
There are gaps at 4156 and much higher at 4757, the latter of which is probably a good guide to how far the bounceback rally will eventually go.
Technically, however, the 200 has not moved above significant resistance. It has also left a gap to the downside and could be facing pressure from the diagonal downtrend lines.
It could go either way in the coming week.
Now, let’s visit last week’s planetary price chart.
ASX 200 Planetary Price Points [click for complete printable PDF report including all charts]
As events turned out, last Tuesday’s price came very close to hitting the Saturn/Uranus lines and the index did recover its 1st Harmonic Neptune line.
That recovery in price now appears to put the ASX outside the influence of this week’s Tsquare.
ASX 200 Venus Saturn Uranus Price Points [click for complete printable PDF report including all charts]
Having jumped up into the middle of the range of the whole T-square action, it would take a huge swing up or down for the ASX 200 to hit either of these planetary price crossing points early this week.
But, there is another aspect happening which could give a clue to its short-term direction.
ASX 200 – Mars and Neptune [click for complete printable PDF report including all charts]
While all our attention has been on the looming Saturn-Uranus opposition, there’s another major astrological aspect on Tuesday – Mars square Neptune.
The price crossing points are fairly close.
So far, the ASX has shown a great deal of reluctance to follow the American indices higher.
Note how far below the price of October 21st the 200 is – in spite of the price gap begging to be filled during any rally.
The downtrending Mars mirror capped last Thursday and Friday’s price action, potentially holding the index at a relatively low level for a further decline.
On a purely technical level, this index is continuing to show weakness, leaving it vulnerable.
On the other hand, Friday’s continued rise in New York could coax it above Mars on Monday – which would put the higher level, maybe even the unfilled gap, into play on Tuesday and beyond.
London’s FTSE continues to behave with quite impeccable manners.
Having cleared the activated downtrend channel with a close (rather than a temporary spike) through on Wednesday, the FTSE closed out the week higher than the lower High of October 21st.
The faster of the CCI lines is turning and we wouldn’t be surprised if a holding pattern develops early this week to see what happens in the USA.
The point is, however, these are quite decisive moves in the indicators. The MACD histograms haven’t been this strong for quite some time … the CCI divergence line is holding, as is the Stochastics divergence … and divergence has also shown up in the MACD signal line trough.
The worst case scenario shown in last week’s long-term “spooky” charts for the FTSE is now off the table for the intermediate future.
FTSE Price Crossing Points [click for complete printable PDF report including all charts]
At the beginning of last
week, the FTSE was weaker than the ASX 200 … putting in a
Low at 3665, as opposed to the 200’s 3724.
Only the action over the coming week is going to answer the question of whether this was too much, too fast.
This price crossing level is now activated in a major way. The FTSE could continue its spurt up to above 4600 … and maybe even continue into the Sun/Uranus trine point at 4690.
Or … it just banged its head against a very solid brick wall.
The DAX is another index which broke to new Lows – and then recovered to break above the lower High recorded on October 20th.
Again, the indicators are quite strongly positive – and not least because this latest High in price has been recorded with every one of the indicators breaking out to higher levels, confirming this break is legitimate.
There is a small, unfilled
gap in the DAX at 5617, providing a realistic target for when we
are certain an intermediate-term rally is underway.
And it would be very unseemly and impolite for astrologers in England to snigger if I were to suggest that Pluto appears to have a strong Germanic influence!
DAX – Planetary Big Picture [click for complete printable PDF report including all charts]
Nevertheless, Pluto it seems to be.
What struck me as interesting here is the current similarity with a similarly radical price plunge during the last Bear … the price spike I’ve marked with an “A”.
After plunging below Pluto, the DAX recovered to consolidate around the higher Uranus line.
If this pattern were to repeat, it indicates the index will recover and consolidate somewhere around the 5600 to 6000 level – at a minimum.
DAX Price Crossing Points [click for complete printable PDF report including all charts]
As with the ASX, the DAX has recovered to a mid-range point which requires a sharp and fairly large movement in either direction for the index to hit these levels in the next two days.
Given the size of some of these daily bars, it’s not at all impossible.
But it again highlights
what is showing up in the intermarket divergence, the American indices
ending the week nudging against resistance … both Bullish
& Bearish scenarios remain alive as Saturn heads to its confrontation
with Uranus, in stock markets and the
So, before we go to the next page … anyone want to guess whether France is Uranian, Neptunian, or Plutonian?
Sorry, but we’ll look at the techs first!
Again, we have a vastly improved technical picture – and with the MACD signal line also giving an unqualified Buy call for the first time in months.
In addition, we have fast converging Bollinger Bands, which foretell of a sharp and sudden move.
And, yes, we can use the merde word … because we have upside and downside gaps.
Scenarios … if we filled the downside first, with a negative reaction to the T-square, we could be pretty sure “the” bottom had finally arrived and be cemented in place for a cyclical rally that would get us back to the higher gap at 3934.
Or we could rally on into that gap … and then, perhaps, go for safety first and move into cash until we saw what happened as the next series of Sun/Mercury/Mars T-squares occur in the first two weeks of December.
Okay … what moves Paris?
CAC 40 – Planetary Big Picture [click for complete printable PDF report including all charts]
Be honest … you were expecting Uranus, but are a bit surprised by Pluto, non?
Nevertheless, his long-term importance is pretty clearcut.
What is interesting here is the other similarity to the DAX … the recovery from those big Bear spikes.
Now, remember, the DAX plunged through Pluto and recovered to Uranus … and Paris plunged through Uranus, only to end up recovering in Pluto’s arms … which tends to indicate Paris may outperform the DAX by recovering to a higher level.
We’ll have to see what happens, of course, but note the big plunge during the Bull market leading up to the 2000 peaks … again the break down through Uranus to return into Pluto’s arms for consolidation.
Another world index which plumbed new Lows last Tuesday – India’s Sensex.
It left a gap to the downside … the divergence uptrend line in the CCI was broken … the MACD histograms haven’t moved to positive territory yet … and the red CCI is in danger of being turned back down from the Zero line.
On the positive side, the MACD signal looks like giving a positive crossover to an intermediate-term Buy signal and the CCI and the Stochastics lines are reaching higher, despite the lower prices.
There are a couple of upside gaps to be filled for when the strength of this rally is confirmed.
In terms of planetary price crossings, please refer to the DJI’s chart – and the same applies to Japan’s Nikkei, since all three of these indices are now in relatively similar price zones.
Japan bounced back strongly last week after going to new lows – and left a lot of holes behind.
The “spacing” between the early October Highs and the September Lows was also a lot wider than in other indices.
It has not broken any overhead resistance and, so far, is still making lower Highs … with the Stochastics and the red CCI both turning down before making it into Bullish levels.
On the other hand, the index continues to bounce from the CCI’s divergence uptrend line and the MACD signal line has made a positive cross.
When the rally is confirmed … there’s a gap waiting to be plugged at 11,271.
After looking through various configurations of the Hang Seng charts, I decided this one was probably the most helpful.
There are gaps and horizontal resistance levels traders can study more closely on smaller-picture charts.
I just wanted to test some downtrend and uptrend angles on this one. The downtrend channel angle is pretty clear … and I’ve tested the current rally angle against the two previous strong rallies and it also appears to be legitimate.
Obviously, the Hang Seng has to drift sideways from one of the downtrend channel lines to reconnect itself to this rally angle for a sustained move.
The main point is that on the two previous rallies, the rally was over when price broke this angle … so, when it reconnects and rises with it, it ain’t done until this angle is broken.
Good luck - RA
*NOTE: Jeanne Long, professional trader and a leader in the research of financial astrology, was a student of the works of W.D. Gann. She has authored several books on financial astrology and developed the principles used in all the Galactic Investors Astrology software. Randall's technical charts and the planetary price line charts included in this report are created using the Quick Harmonic Trader Software, by P.A.S. Astro-Soft, Inc. makers of Galactic Investor Astrology software.
The World At Large is delivered in advance to Astrological Investing Premium Member subscribers. Randall Ashbourne is a former journalist and political strategist who trades the Australian market..
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