Tuesday, February 24, 2009

NY bounces back after Mondays near death experience

After Monday's descent into an extreme danger zone near 7100, the bulls returned looking for bargains as the Dow ended the day at 7350. The S&P also recovered from from Monday's near-death experience below the November lows at 743 and closed at 773. In Mumbai, trading followed a similar pattern as the Nifty retested the January lows at 2675 near the open before ending the day largely unchanged at 2733.

It's hard to see the market falling much more this week, as the Aquarius New Moon has now kicked in. Still the approaching Mercury-Mars-Saturn alignment next week does not look very favourable for share prices. The larger question of course concerns the fate of the market after the Venus retrograde cycle begins on March 6. Many observers feel the market is doomed for another leg down towards SPX 600/Dow 6000, while the more bullish view sees the current lows as largely holding as the market undergoes a process of consolidation before turning higher. I tend towards the latter view, although there are a few key astrological pressure points that we need to get behind us before the bullish scenario can win the day. The Jupiter-Saturn aspect of March 23 may well determine if the market can hang on here or move lower.