More broadly, we can see how this latest phase of the stock market rally has been correlated with the condition of Jupiter. Jupiter, of course, is a bullish planet and when it forms close aspects with other distant, slow moving planets, markets tend to do well. This is very much the case now as Jupiter forms aspects (i.e. significant angles) with Pluto (180 degrees), Rahu (North Lunar Node) 120 degrees and Uranus (90 degrees). These angles have been building for several weeks as they approach their point of maximum inflection throughout the month of August. Local variation from the general pattern is still possible, as India's recent decline reminds us. As always, the current transit picture has to be integrated into the specific horoscope parameters of each national stock exchange.
We can see how previous multi-planet Jupiter alignments have coincided with stock market rallies. After the severe decline in summer 2011, the Dow bottomed in early October near 10,000. It then rose 30% in less than a year as it formed an extended top in spring 2012 between March and May. It subsequently fell sharply again in the summer of 2012. I would argue that much of that 30% gain coincided with the favorable placement of Jupiter. Jupiter formed aspects with other slow moving (and hence powerful) planets such as Saturn, Neptune and Uranus in late 2011 and early 2012. The more aspects Jupiter makes at any one time, the more bullish collective sentiment becomes and the greater potential for stock market gains. The chart for January 1, 2012 shows these multiple Jupiter aspects in action. It is also worth noting that Jupiter was moving particularly slowly at that time since it had stationed direct in late December 2011. A slower Jupiter means that these aspects are in effect for a longer time, and thus sentiment can be boosted that much more.
We can spot another cluster of simultaneous Jupiter aspects in March 2012 near the end of this big stock market rally. Jupiter formed aspects with Mars, Rahu and Pluto at this time as the stock market topped out near the 13,000 level. It would then revisit this high in May but then fall sharply again the summer. As a general rule, sentiment rises as Jupiter aspects approach their exact angles and then wanes once Jupiter moves off. Once Jupiter moved away from its aspects with Mars, Rahu and Pluto, the market slumped a bit. To be sure, it staged a final rally in April without the help of any strong Jupiter aspects, but the overall pattern is worth noting nonetheless. Without the support of any Jupiter aspects after March 2012, the market was more vulnerable to declines as sentiment worsened with the Euro crisis and the possible default of Greece in the summer.
Jupiter's current aspects are moving closer to their respective exact angles this time around. It suggests that the mood is more likely to remain fairly optimistic for a little while longer. Firstly, Jupiter forms an exact opposition exact with Pluto on Tuesday, August 8th. Then it is due to form an exact 120 degree angle with Rahu (NN) on August 16th. Finally, Jupiter will form a 90 degree angle with Uranus on August 21st. The clustering of these three Jupiter aspects this month is a possible sign that the market may be getting close to a top, not unlike the situation in March 2012. While it could rally once again after that as it did in April 2012, that seems less likely given the imminent approach of the bearish Saturn-Rahu conjunction in September as I have mentioned in previous posts.