Sunday, December 28, 2008

Forecast for week of Dec 29 - Jan 2

Stocks in New York declined 2% last week as the tense Saturn-Neptune aspect continued to lurk in the background. The indexes stubbornly stayed above key support levels as the Dow closed Friday at 8515 and the S&P at 872. The immediate source of the negativity seemed to come from the Mars-Jupiter aspect as investors remained cautious before Christmas. The New Moon of December 27th suggests a mixed picture for January as malefic Mars-Pluto rises but Venus and Neptune are in exact conjunction. This is perhaps more evidence that the month to come may feature both a significant decline and a substantial rally. The optimism and idealism reflected in the Venus-Neptune conjunction is well expressed in the Obama inauguration on January 20. This will likely coincide will some kind of rise in the markets.

This week Saturn makes its retrograde station on Wednesday at 27 degrees of Leo. By itself this may not be a bearish influence, but given the Neptune aspect, it takes on a much larger importance. It is one of the reasons that we're likely to see more downward pressure on the market over the next week or two. On Wednesday, there is a conjunction of Mercury and Jupiter which may give some boost to the market, although it is more likely to occur before the aspect becomes exact.

Stocks in Mumbai were in sharp retreat last week as the major indices fell 7% with the Nifty settling at 2857 and the Sensex at 9328. Profit taking from the December rally and increased nervousness of the the tensions between India and Pakistan forced stocks lower. The near term outlook remains negative as Wednesday's Saturn retrograde station will closely aspect the natal Jupiter in the NSE horoscope. The New Moon at 12 Sagittarius is in close aspect with natal Saturn which is another bearish indicator for the Indian markets in the coming weeks.