New York was little changed last week after the early week rally did not hold. While the low-end forecast target of 11,600 was reached, the Dow ended the week slightly lower at 11,370 and the S&P at 1257. This week looks equally choppy, although I think the bias will be up. I am still expecting a significant rally to take place in August, but we may yet have a little more consolidation and re-testing to go. Monday may be negative as transiting Mars aspects the natal Saturn in the Dow 30 chart.
A solar eclipse occurs on Friday, so that be a signal of a trend reversal. If we get below 11,000 intraday this week, then that might be enough to propel the market higher over the next month. I think 12,700 is within reach in the next leg up. Late August or September is likely to see another top, however, which will set up the next big move down for the rest of the year which will likely knock out the previous bottom at 10,700 and possibly bring us down around 9000.
Bombay is coming off a good week and opens at 14,274. I think there may some downside bias for the Sensex this week, so perhaps it will lose some of its momentum from last week and probe below 13k. The Sun-Mercury conjunction on Wednesday occurs whilst the Moon is transiting the 12th house of the Nifty Futures chart. Moreover, Venus will come under the aspect of natal Ketu on Friday, so that is another possible negative influence.
As predicted, Tokyo is coming off a positive week and begins trading at 13,334. There's some potential for negativity this week as Sun and Mercury conjoin in he 12th house of the Topix chart. This may only manifest midweek, however, and the otherwise favourable influence of the TSE Jupiter on transiting Mercury and Sun may offset this early in the week. I don't see a big move either way.
As predicted, the Euro had a difficult week and finished at 1.5691. This week doesn't look quite as negative, but the momentum will likely continue to be flat or modestly negative. I don't think it will go much below 1.56. This will probably be a good week to short the Euro as next week promises to be another big move down, possibly to 1.52.
Oil is coming off another negative week, as forecast, and opens trading at $123. I think this will be a recovery week for crude as the Sun-Mercury conjunction occurs under the auspicious aspect of the natal Jupiter in the Futures chart. The end of the week looks strongest so we may see prices push above $125. Monday may be negative, however, and we may see $120 intraday at some point.
Gold fell sharply last week and reached our target of $920 before ending the week at $928. The bottoming process is continuing here. Like the Euro, Gold will be vulnerable to large pullbacks next week, possibly under $900, but this week the price should hold fairly firm or even trend a bit higher. But given the risks next week, I would be reluctant to take any new long positions here.
