Stocks dropped today on the release of the Fed notes which suggested that the current phase of rate cuts are likely over. The Dow closed at 12,601 while the SPX ended at 1390. While I had thought we were due for an up day midweek in advance of the bearish Sun-Saturn square Thursday and Friday, it seems that the pessimism got a head start. I think this is the beginning of a leg down that will last through next week. The Mercury will station squaring Uranus next week (although the markets will be closed for Memorial Day Monday), so this really may be quite a volatile and negative run here. I would not be surprised to see us approach the bottom of recent trading ranges -- 11,800/1270, although the Dow has been beaten up more than the SPX so it will be more likely to get there. We may even get into a position of actually re-testing those levels next week. If Friday is really bad (-2%), then the re-test scenario will be more likely.
While tr Venus conjoins the natal Mercury in the 1792 chart, Sun is applying to its degreewise square with Saturn just one degree past the natal Sun in this chart. Happy Birthday, NYSE -- I can't imagine a worse gift than a Sun-Saturn square in a return chart. It bodes very poorly for the year ahead. Also, the Mercury is stationing square Uranus but that is also square the natal 1792 Mars and forms a very volatile t-square. I think May 30 may be the short term bottom.
