(24 April 2022) We're
not in Kansas anymore. Stocks plunged last week after Fed Chair
Jerome Powell signaled a 50 basis point rate hike at the next FOMC
meeting on May 4. While the Fed had previously been preparing markets
for a much tighter monetary stance to fight inflation, investors seem
to have finally got the message after a hawkish Powell promised several
hikes through 2022. The prospect of significantly higher borrowing
costs is anathema to markets which have become dangerously dependent
upon cheap money from the Fed's zero interest rate policy.
The decline was not unexpected given the prevailing Saturn influence.
The month of April has been generally bearish due to the relative
strength of Saturn. As noted last week, the near-exact Saturn-Ketu
square aspect was primed to release of its negative energy and all it
needed was a trigger. The late week alignment with fast-moving Mercury
proved to be that trigger as Mercury conjoined Rahu (and thereby
opposed Ketu) and squared up with Saturn. It was classic case of an
alignment of slow-moving bearish planets (Saturn and Ketu) required a
triggering planet for the negative potential to fully manifest.
Moreover, we can see that on Friday, April 22 the
Mercury-Saturn-Rahu/Ketu alignment set up almost exactly on the natal
Mars-Ketu conjunction in the S&P 500 horoscope. Since Mars and
Ketu are both malefics, the incoming Mercury-Saturn-Ketu alignment
piled on the negative energy even more to create a very potent pattern.
This week may also have some continuing volatility although the picture looks more complex. With Mercury quickly moving away from its conjunction with Rahu and the natal Mars-Ketu, there will likely be less bearish energy available. Of course, Saturn and Ketu will still be in very close alignment to the Mars-Ketu in the S&P 500 chart but it looks less damaging this week without an obvious triggering planet.
Bears may still have some hopes though as Saturn is due to change sidereal signs on Wednesday (or Friday if following Lahiri) as it enters Aquarius. Saturn sign changes occur every 2.5 years and can be bearish although they typically need other factors to confirm. Even if Saturn is now separating from its square with Ketu, it is, however, moving into a 30-degree alignment with Neptune. This will be an extended alignment, however, as Saturn will be aligned with Neptune for the next four weeks. While it looks like a bearish influence, this extended alignment means it is more difficult to pinpoint specific days of market declines.
We should note that there is a real chance for some upside this week as Venus conjoins Neptune on Wednesday and enters Pisces, its sign of exaltation. In the late week, Venus will align with bullish Jupiter. Wednesday could therefore be an important day since Saturn enters Aquarius just as Venus enters Pisces and both align with Neptune. While a bounce seems likely at some point this week, Wednesday's outcome is a tough call, although the Moon's transit of Pisces that day would suggest that the strength of the other bullish planets in Pisces (Jupiter, Venus, Neptune) could get a boost. Let's see.
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