In keeping with our previous forecast, American markets turned bearish last week as key indexes broke through their previous January lows. This week is likely to be similarly negative with serious retesting of the Jan 22 intraday lows (11,500/1270). I expect to the market to break through those levels at least on an intraday basis. Thursday may be decidedly negative as the transiting Sun opposes the natal Mars of the NYSE chart. Friday's close also looks like a decline so we should finish lower than Monday's open. The week after next (esp Monday the 17th) looks more negative so investors looking for exitable rallies would do well to act this week or wait a couple more weeks. That said, I think we won't see 13,000/1420 for many months, or perhaps even next year.
Bombay and Tokyo are also coming off tough weeks. The Sensex is unlikely to experience any great recovery this week. In fact, I think we'll end up lower than where we started at 15,975. Tuesday looks like the most bullish day. Starting the week at 12,782, the Nikkei will also retest lows this week given the transiting Saturn square to the natal Venus in the TSE chart. Rallies will be weak and may not go much above 13,000, while the intraday downside may see 12,000.
The decline in the US dollar and the rise in the Euro will continue, although I think the gains may be more modest this week. Monday looks mostly negative, perhaps will dips near 1.525. The rest of the week seems stronger overall with a rise into Friday. Next week looks like there will be more upside beyond 1.55.
Oil is likely to continue higher. Monday may be negative, but the upward trend with resume on Tuesday. We may see $110 at some point this week. Thursday looks like a big gain.
Gold starts the week at $972 and is poised to hit $1000 and yet I'm questioning my faith that it will break through this week. Monday looks the most volatile but I'm not certain if the market will stay positive. A decline for Tuesday seems likely. Wednesday looks strongest. Retracement is likely for Thursday with Friday as an up day that may take us over the top. We should end the week higher than where we started.
