New York is coming off an up week that may have temporarily stilled investor anxiety. After Tuesday's intraday low of 10,730, it seems that a growing number of participants are thinking that we have formed a bottom here. Our bullish forecast was confirmed with the 4% gain, although the strength of the optimism was somewhat unexpected. The Dow opens trading at 11,496 while the S&P sits at 1260.
I think the week upcoming is likely to see further gains with the approach of transiting Mars in aspect to Jupiter. Monday may see a drop, however, as transiting Sun falls under the square aspect of the natal Saturn in the 1792 chart. Tuesday may be more positive as Mercury is in trine aspect to Uranus as the Moon transits through Jupiter-ruled Purva Bhadrapada. Wednesday looks difficult. Friday also has the potential for a significant gain as Mars comes closest to the influence of Jupiter. Depending on how severe any early week sell offs may be, I think the market can rise to 11,800/1290. If the Dow falls back below 11,200 on Monday, then we may only finish modestly higher -- 11,500 - 11,600. Looking ahead, I think last week's lows will be retested eventually, perhaps as soon as the next two weeks. This market is not out of the woods yet.
Bombay followed on New York's lead last week and came off its lows of 12.5k and closed at 13,635, slightly above the previous week's levels. While there are some favourable influences this week, I'm less sure that the Sensex will finish higher. That's because transiting Mars (20 Leo) will fall under the 8th house aspect of natal Mars (20 Capricorn) in the IFN ETF chart at the end of the week. Venus (20 Cancer) also makes an aspect to chart ruler Mars so that may have a mitigating effect. Transiting Sun comes under the aspect of natal Rahu on Monday which may make the early part of the week negative. The best chance for gains may occur Wednesday or early Thursday as transiting Venus crosses the ascendant of the Nifty Futures chart.
Tokyo resisted the up trend last week and failed to rally and closed slightly lower at 12,803. This week looks mixed as transiting Venus comes under the influence of natal Mars in the TSE chart midweek. Some recovery is possible as transiting Sun is aspected by natal Jupiter and Mercury comes to the ascendant. 13k is a reasonably intraday target here and if Wednesday is not a major pullback, then I think there's an upside bias overall.
As forecast, the Euro did move past 1.60 but did not hold that psychologically important level. It ended lower on the week and opens Monday at 1.585. As the price of crude weakens, the Euro is vulnerable to sudden declines. Monday may be one such day, as transiting Venus opposes natal Uranus. Tuesday looks bullish as Mercury and Moon are configured with natal Jupiter. Overall, I think most of the action will be to the downside. Right now, I'm looking at Aug 6th as an interim bottom.
As predicted, Oil fell last week, and even broke through the target of $130. It opens trading Monday at $128. Crude will likely recover somewhat early in the week as transiting Venus comes under natal Jupiter's aspect in the Futures chart. Prices may rise above $135 before being vulnerable to declines later in the week as transiting Sun comes under the negative influence of natal Saturn. A finish near or somewhat below current levels is the most likely outcome.
The rally in Gold failed last week and it ended slightly lower, as forecast. While it did not probe our target $940 last week, it may well this week as transiting Mercury comes under the negative influence of Saturn in the GLD ETF chart late in the week. Overall, gold looks bearish this week, and possibly into next week also. Since Sun transits Saturn-ruled Pushya, I would not rule out $920.
