NY rally fails

New York was up most of the day but only broke even at the close. While I had thought we might be more negative today, this sell off at the close is a bearish indicator and creates the conditions for more declines this week. While next week's market is more likely be the capitulation that some have been waiting for, I would be guardedly pessimistic here. A close below 11,000 next week might be the buy signal that some traders are looking for before they get back in.

Bombay looked very weak Monday and closed down over 2%. The BSE is vulnerable to very large drops if there are any significant down days in New York, such as may occur tomorrow July 1. The BSE may have more strength Wednesday and Thursday, however as the Moon-Venus-Jupiter aspect perfects on a potentially significant natal point. But that may only put off the inevitable decline under 13k on the Sensex next week.

Tokyo was down only modestly and closed at 13,481. The Nikkei is likely to finish above 13k this week and perhaps closer to break even which would be a victory of sorts. I think most of the bearishness will hit next week.

As predicted, the Euro sold off almost half a cent today and closed at 1.5744. A flat week seems to be the best one can hope for.

Oil and Gold were largely unchanged, although Oil did reach another high this morning hitting above $143. I still think Oil has a ways to go here. I am less certain about Gold.

Market Forecast -- week of June 30 - July 4

Markets in New York slumped badly last week in advance of the Mars-Saturn conjunction. While I had thought we might sneak a decent week in before the inevitable deluge last week, I was a little off in my timing as losses deepened at the end of the week. The Dow starts Monday at 11,346, thus erasing the previous winter low and is now officially in bear market territory. The S&P is in modestly better shape at 1278, just one percent above its winter low, and down over 18% off its previous high. While exact market timing remains as elusive as ever, my overall bearish forecast has been borne out by June's decline. The question is, will the market continue to slide as the Mars-Saturn conjunction tightens?

Aside from the obvious intensifying of the aspect, I think there's good reason to think there is more downside here. It's possible we will see 11,000 and 1230 this week so there is good reason to stay short this market, at least until July 10th. My best guess here is that next week will be worse than this week. The natal Venus (10 AQ) in the S&P chart will receive the twin malefic energy of Mars and Saturn when they oppose it next week on July 10. The natal Mercury (7 AQ) in this chart will be opposed by transiting Mars on July 2-3 this week, so that might signal further significant declines. Monday doesn't look good with Moon in a square to the Mars-Saturn-Neptune at the open and may reinforce the gloom in the coming days. I wonder if Thursday is the best day of the week as Moon is conjunct Venus opposite Jupiter. With no trading Friday ahead of the July 4th long weekend, volume is likely to be lighter than normal so the mood may unrealistically buoyant. I don't want to preclude the possibility that we've seen the bulk of the decline already and we may be close to forming an interim bottom around here. This goes for all world markets.

The BSE is also coming off a tough week and opens at 13,802. Note how Friday's 600 pt decline corresponded with transiting Mars (3 LE) exactly opposing the natal Saturn (3 AQ) in the BSE 1875 chart. Now that it's broken through 14k, there is considerable room here for more declines. The IFN ETF chart resembles the S&P chart in that there are a few planets in Aquarius (Sun 3 AQ, Saturn 8 AQ, Venus 10AQ, Mercury 12 AQ) that are under pressure from transiting Mars and Saturn. While it is sometimes a mistake to expect the biggest moves when aspects come exact, it is still a useful rule of thumb. I would also add that there is no strong confirmatory bearish signal in the Nifty and BSE 1875 charts. Transiting Sun passes over the equal 12th house cusp in the Nifty chart towards the end of the week, so that might be the worst day of the week. The following week looks worse as transiting Venus conjoins the natal Rahu while tr Mercury conjoins the natal Mars (opposite natal Pluto). There is a good chance that losses may not be too extensive this week, but next week's negativity would keep me from being long in this market.

Tokyo is coming off a down week and opens at 13,544. The natal Saturn (6 LE) in the TSE chart will be conjoined by tr Mars early this week and signals further losses. The Topix chart has 10 Leo rising and this will get hit by both Mars and Saturn next week at the conjunction. Moreover, tr Mars will square the natal Mars (8 SC) creating a very intense and bearish configuration. This again confirms the likelihood that next week will be worse than this week. While Japanese markets have outperformed most other global markets thus far this year (the key indexes are both running Jupiter dasha), there's a decent chance it will play catch up on the downside in the second week of July. I think a close below 13,000 is likely.
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As predicted, the Euro is coming off a solid week and starts at 1.5787, well above our 1.57 target. I think the Euro will have a tougher road this week as tr. Mars is closer to the equal 12th house cusp. We might see some gains in the US dollar early in the week which might push it down below 1.57. I think the buying will return later in the week, however, as the Moon transits the 10th and 11th houses in the natal chart. Overall, I think we'll finish near our current levels, maybe slightly above. The week following looks stronger so it's possible that the 1.60 level might be broken then as tr Mercury hits the 10th cusp.

As predicted, Gold had a good week against a flagging US dollar, rising above $900 and it opens Monday at $931. It's likely got more juice in the tank this week but it may be volatile. The charts show a conflicting picture. The iShares Comex Gold ETF chart (Jan 21 2005 9.30 NY) looks good as tr Jupiter in the 11th conjunct Sun and Mercury is reinforced by the aspect from transiting Venus. Tuesday may not be great, however, as tr Mercury and Moon oppose the Mars in this chart. Tr Venus conjoins the natal Saturn in the futures chart which may also be bearish. Wednesday and Thursday should see a return to strength as Moon and Sun will transit under the aspect of the Futures natal Jupiter. Hopefully, that puts Gold in the plus column for the week. The following week looks more uncertain. I'd be skeptical about any lasting up moves here. By contrast, I prefer the last week of July as the start of a lasting rally.

As predicted, Oil is coming off another bullish week as prices topped out at $142 before closing just above $140. With tr Mercury passing over the ascendant in the Futures and ETF chart under Rahu's aspect, this up trend is likely to continue. Wednesday the 2nd looks very strong as tr Venus comes under benefic aspect of Jupiter in the ETF chart. This current rally is likely to end July 8-10 when the Mars-Saturn opposes the natal Venus in the ETF chart while tr Mercury conjoins the natal Mars. We may be above $150 by then, so the decline might be sudden and take us back under $135. Another major rally is likely to start in the last week of July.

A New Bear Market

This recent decline in global markets has all the earmarks of a new bear market. If the market is heading lower here, then one has to wonder how long this pessimism will last. While I have been bearish for over a year now, I have never really given the length of bear market much thought. Certainly, there are good theoretical reasons for thinking that this is no ordinary, run-of-the-mill bear market. The bull market that preceded it was unprecedented in terms of its length (18 years) and the increase in stock values (over 1500%). While there is no law that bear markets are always proportional to the bull markets that precede them, it is not unreasonable to assume that there is some correlation there. The bear market of the 1930s followed the extended bull run of the 1920s, while the decline of the 1970s was part of a longer sequence that began with the bull market in the 1950s and early 1960s. Besides the extent of the previous rise on the market, we also are faced with the prospect of a new reality in the energy sector. Crude oil is setting record levels and there is no end in sight as supplies are increasingly seen as finite while the developing world in Asia is experiencing the most rapid economic growth in its history which will push demand to ever-higher levels. To add to this unstable economic mix, the US economy is in a precarious state as government and personal debt levels are growing faster than ever before, as the US dollar falls to new modern day lows against most currencies. Even without any astrological insight, it does seem we've moved into a dangerous new economic era in which stock markets are unlikely to do well.

But we know that the planetary patterns are also indicative of prolonged difficulties in the economy. As Louise McWhirter discovered, Rahu transiting through tropical Aquarius/sidereal Capricorn has a very negative effect on the US economy and is usually associated with recessions. Outer planets in hard aspect also often signal global problems that have financial manifestations. The depth of depression in 1932 was marked by the t-square between Saturn, Uranus and Pluto. In a 2005 article in The Mountain Astrologer, Ray Merriman has noted that a t-square involving the same planets will occur in 2010 and has suggested we may be in for a similarly negative economic downturn. While I do think this t-square will mark the likely bottom in the stock market, I'm not sure it will be as bad as the 1930s where stocks lost over 85% of their value from their 1929 highs. This is because these planets will not conjoin on or near any key planets in the NYSE chart. In 1932, transiting Uranus conjoined the natal Moon of the NYSE 1792 chart while Pluto formed an exact square to it. These closer natal afflictions were perhaps additional sources of bearish sentiment that forced stocks down to those historic levels.

We are likely to see a steep decline in stocks in November and December as Saturn stations opposite Uranus. This is a difficult configuration in mundane affairs, but since Saturn will station on the natal 2nd house Mars in the NYSE chart, there is good reason to think it may have a directly negative effect on the market. Assuming we see new lows set in July around 10,500-11,000 on the Dow, any rallies after that into the Fall may get the market back as high as 12,000-12,500. I think I'm being generous there, but it is possible. This is the classic pattern of a bear market rally where significant gains of 20% or more can occur in a few months. The key point here is that the highs are not as high as the previous ones. The market then loses faith and starts a new leg down towards a new lower low. This is what is likely to occur in November and December. I would not be surprised to see the Dow go down to 8500-9000 at that time. This may correspond to about 10,000 -11,000 on the Bombay Stock Exchange. After that, we can expect to see some sideways movement and perhaps another rally at some point in 2009, especially in May and June as Jupiter will station at 2 degrees of Aquarius conjunct the natal Pluto in the NYSE chart. Neptune will be there also for good measure, adding to the deluded quality of the rally. Again, the highs likely won't equal where we are now or even where the market might reach in Fall 2008 -- perhaps 11,000-11,500 on the Dow is possible then. But the Fall 2009 period looks terrible for the markets again as Saturn stations as 10 Virgo exactly conjunct the natal Rahu in the NYSE chart. To make matters worse, this will be square Pluto within just a few minutes of orb. To add to the generaly sense of volatility and chaos, transiting Ketu will be aspecting transiting Uranus within a degree and in December 2009 transiting Mars will station just degree from the natal Uranus in the NYSE chart. This confluence of negative factors might suggest a low point in the market, perhaps in the 6000-7000 range. Calling market lows so far in the future is pure speculation but I do think that the declines will be on that order of magnitude, i.e. 50% or more off the all-time highs of 14,000 on the Dow.

Of course, there are other investment vehicles besides stocks. Oil is likely to continue very strong over the next two years at least and likely well beyond that. Jupiter dasha runs until 2014 in the Futures chart and given its favourable condition with Uranus in the 7th house, we can expect to see crude prices to remain bullish for the foreseeable future. I expect Oil to make a new top in September and October, perhaps towards $200. Gold is also likely to spike in the late summer and Fall, probably over $1000. Some sharp declines are likely in that volatile late Fall period as transiting Ketu conjoins the natal Moon. However, the Gold Futures chart is running the benefic Venus dasha until 2015 so prices are likely to stay bullish for some time to come.

NY down 3% as winter lows retested

New York declined sharply today as investors are waking up to the reality that the assortment of economic problems (inflation, recession, etc) won't be going away any time soon. The Dow closed at 11,483, below the January support level of 11,500 while the S&P ended the day at 1283. While I had thought we would have more of an up week, this decline comes as no real surprise given my bearish forecast for next week and generally gloomy outlook for stocks worldwide.

The severity of this sell off underscores just how pivotal the coming two weeks will be as Mars applies to Saturn. The S&P now has the all-important 1270 support level in its sights and if we break through that in the coming days, then the market will be in real trouble. I think we have some ways to go on the downside, possibly as much as 10%, which would take the Dow below 10,500 and 1170 on the S&P. Those are worse-case targets though and are little more than guesses. I'm loath to predict Friday's trading, as things could go either way.

The BSE has managed to stay above 14k so far, but no doubt will sink below tomorrow. It seems I will be off in my forecast of Friday levels. It is going to be vulnerable to steep losses in the coming weeks.

As predicted, the Euro is having a bullish week as the greenback sold off in the wake of the Fed meeting that left rates unchanged. It's already at the target of 1.57 and tomorrow bodes well.

Oil gained over $5 Thursday and closed at or near a record of $140. This confirms our bullish forecast for Oil for the week. We'll easily hit $150 next week as Mercury crosses the ascendant of the Futures chart.

In a stunning turnaround, Gold rose over $30 today and hit $915 after being down in the earlier part of the week. It is well within range of our target price of $920. I am expecting prices to stay strong here and it may move higher Friday.

Market Forecast -- week of June 23 - 27

As predicted, stocks in New York fell this past week. We were even fortunate enough to hit our downside targets of 12,000 on the Dow and 1320 on the S&P. The Dow closed Friday perilously close to winter support levels of 11,842, while the S&P ended the week at 1317. Much of the bearishness could be attributed to the Mars-Ketu conjunction and the Sun-Venus opposition to Pluto, along with some difficult transits to the Dow 30 natal chart, particularly Sun and Venus coming to the 8th house Mars.

As transiting Mars now enters sidereal Leo and 'bears' down on Saturn, there is the likelihood for further declines in the near future. I don't think we will see them this week, however, as we may see some bargain hunting. The earlier part of the week looks more likely to decline, as Moon opposes Mars and Saturn. As the week goes on, we can expect more strength. If declines do occur early on, then the market may finish Friday around current levels, or maybe slightly above. If the declines Monday and Tuesday are more modest, then I would not be surprised to see 12,200 and 1350 on the indexes. But even in the best case scenario, this week will offer only a temporary respite from the overall downward trend. The following two weeks look more negative so we may retest winter lows then. At this point, I would say there's a 50% chance of breaking through Dow support (11,500) and SPX support (1270) in the coming weeks. Whatever lows are established then, we can look forward to a major rally in August.

The BSE also got caught up in the bearish mood and the Sensex closed down well below 15k to 14,571. This week looks better as Mercury begins to move forward again and sits atop the 11th house cusp in the Nifty Futures chart. Also the 11th house of gains in the India ETF chart is activated by the aspect from transiting Mars to the natal 11th house Sun. If the market manages to shrug off some early week negativity and avoid falling to 14k, it may make a close above 14,500-14,750.

Tokyo was down last week and opens Monday at 13,942. Like most global markets it is below its 200-day moving average, although its recent performance compares favourably with most other exchanges. It is one of the few equity markets that is currently trading above its 75-day moving average and is probably in a better position to weather further declines this year. This week more or less conforms to the pattern suggested above, with strength later in the week. In this case, the transiting Venus will aspect the natal Moon of the TSE chart and produce some significant rallies. Overall, I'm a little less optimistic for the week as a whole, as there seems to be more downward pressure early on, as transiting Mars will fall under the aspect of the natal Rahu, which combined with the malefic aspects to the transiting Moon may yield some steep losses.

As predicted, the Euro had a good week finishing above 1.56, although the intraweek action did not follow the forecast as Friday proved to be the best day. Monday and Tuesday look flat or weak as Moon enters the 6th house in the natal chart near Ketu. A drop back to 1.55 is possible here, but look for a nice rally Wednesday through Friday as transiting Venus closely aspects the natal Sun. I think there's a good chance we will finish higher for the week, possibly above 1.57.

Oil ended the week pretty much where it started, around $134, but not before it had rallied Monday above $139. I had thought a rally was likely and forecast a stabilizing of prices at some point. Friday's rally also caught me a little off guard as I had thought that most of the froth had been cleared. As the Moon transits through the 10th and 11th houses of the Futures chart (Aquarius and Pisces), there is good reason to think that Friday's rally may have some legs to it. While I had previously thought we were pretty much done with Oil in the short term, I'm less certain of that now. Mercury is moving forward now and forms an aspect with Rahu as it once again crosses the ascendant of the Futures chart. That is likely a bullish indicator that will likely manifest mostly next week (6/30). I think the bias is on the upside this week as well.

As predicted, Gold is coming off a good week as it managed to hit our target of $900. It opens trading Monday at $903. With Mars entering Leo and transiting Venus aspecting the natal Sun in the Futures chart, I think there is an upside bias this week that should push prices higher, possibly to $920. The following week also looks solidly bullish, perhaps even more so. Expect a pullback after that. July 10th, the date of the Mars-Saturn conjunction will almost certainly push gold prices down sharply.

P.S. I'm experiencing some server problems on my main site. It will take a few more days to get it back up and running.

Oil falls below $132

It seems that the oil rally may be over for now as crude fell $4 today back under $132. I had thought that the early part of the week was the most bullish and this has largely been borne out as Monday saw the spike over $139. After Wednesday, I thought crude would be more subject to decline and today's action confirms this as well. I would expect tomorrow to be negative or flat at best. The week after next (June 30) may see another run-up, however limited, as Mercury crosses the ascendant of the Futures chart and is in aspect with Rahu.

Stocks in NY rose after a couple of bad days. The Dow closed at 12,063 and the S&P at 1342. This sets up the possibility for a rally with the Moon-Jupiter conjunction tomorrow. I'm not certain it will go anywhere, however, since the aspect perfects in the morning. We will likely see selling pressure in the afternoon. I'm generally bearish, so further erosion of these levels is still the most likely scenario.

In keeping with the forecast, the Euro held steady at 1.55 today, and continues to rebound from last week's tumble.

Gold had another solid up day and closed at $904, its highest level in three weeks. This reached the weekly forecast target of $900. I think it's susceptible to sell offs over the next week, however.

Oil falters

Oil stayed around $134 today and it appears that the rally is over for now. Tomorrow may have a chance at a rise but things generally look weaker going forward. I expect it to form a bottom around $110-120 over the next few weeks. I would also not be surprised to see it sink as low as $100. Late July will see prices rise again and current levels will be eclipsed going into the Fall. We will almost certainly see $150 and perhaps much higher. The first week of August looks very strong for oil in the futures chart.

Gold is still in the process of forming a bottom in advance of the next move up. I would not be surprised to see short term sell offs to $850 in the next couple of weeks, although that is more of a worse case scenario. Chances are we stay between $860-920 in the next few weeks and then another big rally over $1000 ensues beginning in August.

Oil sets record hitting $139

In what appears to be a partial validation of the Venus-Pluto energy, Oil hit a new all-time high above $139 today, although it closed basically unchanged around $134. I think it's likely to make another run at $140 tomorrow as the transiting Moon will activate the natal Jupiter in the Futures chart. Wednesday also looks like it has some rally potential as the Moon conjoins Pluto and can bring in the Venus once again. After Wednesday, I'm less bullish on crude.

Gold also had a strong day as forecast, although it settled back in the afternoon to close at $886. Let's see if it goes above $900 tomorrow.

In keeping with the retreating US dollar, the Euro followed commodities higher, closing well above 1.54. This bodes well for our bullish forecast for the week. If anything, the forecast rally may turn out to be too conservative.

Against expectations, stocks in New York were flat. I expect bearish sentiment to rule tomorrow, especially in the afternoon.

The BSE did well Monday. There is now a good chance it will close above 15k for the week. However, the upside remains limited.

Market Forecast -- week of June 16 - 20

New York ended the week strongly but ended flat for the week as the Dow opens at 12,307 and SPX at 1360. I missed this late week rise, believing that the nastiness of the Mars-Ketu conjunction would cast a pall on whatever rosy fantasy the Venus-Neptune trine could conjure. No such luck. This week seems also biased towards the downside as the Mars-Ketu may offer some residual negativity while Venus and then the Sun oppose Pluto. Some late week rally is possible, especially after Mercury turns direct on Thursday morning (EDT), but overall, I think we will see continued retracement towards 12,000 and 1320. Monday may be the worst, however, as the Moon will square Saturn. With the Mars-Saturn conjunction in July still ahead, this may not be a good time to commit new money to the market. Friday will be an interesting battle as the Moon-Jupiter conjunction suggests a ray of optimism amidst the gathering gloom of the applying Mars-Neptune opposition. Given the proximity of the Sun-Pluto opposition that day, I would not bet on any bull run.

The BSE is coming off a down week and opens at 15,189. Thanks to the late week rally, this is higher than forecast and the Sensex remains above the psychologically important 15k level. Monday looks negative as the Moon is in square aspect to Saturn, while Mars has only just moved past Ketu in the sky. I believe it has yet to deliver its bearish karmic payload. Transiting Venus passing over the natal 12th house Mars in the Nifty Futures chart so that is another potential source of decline early in the week. While I think we're headed for a close decisively below 15k, I don't think declines here are going to be massive. There's a good chance we'll stay above 14k and may well be close to 15k until early July. After that, the lows may well be re-tested. Longer term, I am looking for some kind of substantial rally in August.

The Nikkei opens at 13,973 after a negative week. This week really does not look good for the TSE as both tr Venus and Sun will fall under the disruptive influence of the natal Ketu. While this is not in itself bearish, dispositor Mercury is going to be retrograde while tr Saturn is squaring the natal Venus very closely. 13,500 is very possible here, although if we see a nasty Monday or Tuesday, it could go much lower.

The US dollar rallied strongly last week and the Euro bore the brunt of it. It opens trading Monday at 1.5393. I missed this move completely, although in retrospect, I can see the source of my error. My much-hoped for tr Venus to the natal Moon fell under the influence of the natal Ketu so this likely threw a wrench into the works. While central banks are trying to talk up the dollar, I still believe the Euro is due for a rally, as tr Venus moves over the natal Midheaven. It is possible that the Euro sell off continues given the presence of Pluto on the IC, but I think the bias will be towards the upside. Whatever direction the Euro takes, there is a good chance that it will be large -- possibly 2 cents in one day. At the same time, tr Mars conjoins the natal Rahu in the 12th opposite Neptune. This appears to be a very bearish indicator. One possible scenario is for a Euro rally early in the week back to 1.55 or 1.56 and then another decline Thursday and Friday back to current levels. It definitely looks volatile this week although I would like to think we finish higher than 1.54.

After an early week sell off, Oil rallied towards the end of the week but could not match last week's prices. It opens at $134.86. I think Oil will attempt another rally this week, as the tr Venus conjoins the natal Rahu in the Futures chart. With Pluto anchoring the aspect through an opposition aspect, there is a chance for a spectacular rally Monday or Tuesday. But it is anything but certain. More than anything, this combination suggests a large price swing and it could be in either direction. As the week progresses, prices should stabilize. I think we're getting very near the short term high and we may hit it this week, if we haven't already. Late June and July looks worse for Oil. Right now, I think there will be a significant negative turn in sentiment around July 5.

Following on my missed call for the Euro, and the bidding up of the greenback, the dominoes fell and Gold also had a bad week. It opens at $873, stuck in its current trading range between $850 and $950. The Venus-Sun opposition to Pluto this week contains the possibility for big moves here and there is a good chance they will be on the upside. In the Gold ETF chart, 5 Sagittarius rises, so the Pluto-Venus aspect will straddle the ascendant and create the potential for strong gains early in the week. Friday may also see a rise as Venus makes a good aspect to the natal Uranus in this chart. There's a reasonable chance to get back over $900 this week but much depends on Monday's action. If it's up, then we're likely headed substantially higher.

Oil rallies above $136; Dow falls

New York equities finally took that forecast tumble as the Dow closed down about 1.7% to 12,083 and while the SPX ended the day at 1335. While I had expected declines Monday, this does set up the real possibility of further declines Thursday and Friday which may get us within striking distance of the forecast low of 1320 on the SPX. My guess is we make it and then some.

The BSE has also been struggling this week so it will be interesting to see how low it can fall. It seems certain to break through 15,000, but it may finally revisit winter lows if the selling develops a head of steam. It's very possible if the Nifty Futures chart works as advertised. The natal conjunction of Sun and Venus at 27 Taurus is currently under aspect from tr. Rahu while tr. Sun and Venus more or less exactly conjoin their natal positions. There is a lot of energy there for a significant price movement. And given that Tr Rahu is conjunct the natal Uranus opposed by tr Mars, it really does look quite precarious for long positions. This is not to say a sudden rally might also manifest from the Rahu-Sun-Venus configuration, but all things considered, I think the sentiment should be negative, especially for Friday.

I missed the early week sell off in the Euro, but today's rally has put it in better position for a late week move upwards. Friday is key here since the tr Venus conjoins the natal Moon in the 10th house. By rights, it should be a major rally. This will be a good test of the usefulness of the Euro chart (Jan 1 1999, 00.00).

After coming off Friday's highs, Oil again rallied today on reports of falling US inventories and closed up $5 to $136. I had forecast continued strength this week and today's action partially validates that prediction. The tr Sun and Venus are very close to the Ascendant in the US Oil ETF chart so that may be one possible source of the rally. Also they are applying to trine Neptune close to the MC in the futures chart, so if all goes according to plan (which it never does), we may see Oil well over $140 by the end of the week.

Gold had a good day today finally as it closed up $14 to $883. I had predicted the early week sell off from the tr Mars opposing the Gold ETF Moon, although I hadn't quite allowed for that much of a rout. I still think we have some upside to explore for the rest of the week, although my forecast high of $920 may be overly optimistic.

Market Forecast -- June 9 - 13

Stocks in New York plunged 3% on Friday and ended the week lower as the Dow closed at 12,209 and the S&P at 1360. This confirmed last week's bearish forecast for Friday in particular and for the negative trend on the week. If anything, I underestimated the extent of the pullback as I had thought the larger declines would come the week following with Mars conjoining Ketu. These declines are still imminent, however, so we will likely see more downside here. The end of the week looks especially negative with the tr Sun-Venus squaring Uranus and the tr Mars moving in close to Ketu as it conjoins the natal Uranus in the 1792 chart. If the market manages some gains midweek, it may limit the losses to perhaps 2-3%. But that looks like a best case scenario. The Dow may re-test its March lows of 11,750 at some point, while the S&P may find itself approaching its winter support level of 1320. Monday looks quite negative, while Tuesday will probably see a significant snapback rally as the Moon trines Jupiter. Buckle up.

Tokyo has stood up rather well of late and the Nikkei is still well above 14,000. This is about to change, however, as tr Saturn will square the natal 11th house Venus in the TSE chart. Monday will be predictably terrible, but look for a larger than NY's 3% loss as the transiting Moon conjoins both the transiting Saturn and the natal Saturn of this chart. Expect the short term low to occur early next week (June 16-18) as tr Sun-Venus will pass over the equal 12th house cusp. I think it will decline below 13,000.

The Euro had a big day Friday against the US dollar and closed at 1.5778. Its gain of 2 cents on the week was broadly in line with our bullish forecast. I think the Euro will continue to move higher this week as tr Sun-Venus is aspecting the natal chart ruler Mercury. 1.60 is well within reach. Tuesday may be the best day of the week, as the Tr Moon falls under the benefic aspect of natal Jupiter. Friday may also have some significant upside as Tr Venus conjoins the natal Moon in the 10th house. That may be an indicator of a new all-time high in the Euro against the dollar.

Oil had a record-setting day on Friday as it closed up over $10 to finish at $138. I had forecast that there would be a second leg up in this rally with the Sun-Venus conjunction moving to the ascendant of the futures chart, although I had thought it would not arrive until this week. Clearly, another major speculative rally is underway. Part of the difficulty calling the top concerns the ambiguity of the futures chart itself. Its exact time of inception is unknown. If it is in fact 9.00 a.m as Friday's rally would strongly suggest given the impact of Sun and Venus passing over the ascendant, then the rally may not have that much further to go. One possible sign of a top would be the Sun and Venus falling under the exact aspect of Rahu on Tuesday and Wednesday. I don't think it will be done then, however, as Sun and Venus will trine Neptune on Friday. Neptune is considered by many astrologers to be the significator for oil. It's usually impossible calling the date and level of the exact market top but I think Friday is the most likely candidate. I have no idea what the price might be by then. $150 seems almost certain given all the talk, and it may be much higher than that. Whatever day it turns out to be, I don't think we will see much downward movement until perhaps the Mercury station on the 19th. This will be aspected by the Jupiter in the Oil futures chart, so its separation from this favourable energy may take some of the enthusiasm out of this market.

With the result of the dollar weakeness, Gold rose sharply on Friday and closed at $899. While my forecast mixed up the days for the larger price movements, I did mention $900 as a possible close and I did allude to increased volatility. It's noteworthy that the greater than normal number of aspects in the Gold futures chart equated to a big gain, even though many of the aspects involved malefics and supposedly hard aspects. I think Gold is likely headed higher this week, although there is an opposition aspect from tr Mars to the natal Moon in the ETF chart that makes me wonder if we won't see at least one negative day. $920 seems within reach. Monday looks positive as tr Moon will be aspected by the natal Jupiter. I think this short term up trend will probably continue into early next week, up until about June 18th. Actually, there seems to be a general bullish trend until perhaps the first week of July when Sun and Venus will be aspected by the natal Jupiter. I would not be surprised to see gold at $950 by then.

Oil soars on US dollar weakness

Oil is up again today -- over $6 right now, to $134.

I can't help but think this is part of the rally I forecast last week that would result from the Tr Sun and Venus approaching the Asc of the futures chart. Of course, one unknown was exactly where the ascendant of the Oil futures chart was. The 9.00 am chart has an ascendant of 22 Taurus, which is exactly where Sun and Venus are today. This massive rally yesterday and today would appear to be good confirmation of the this chart.

If we take the 9.20 chart (Asc 27 Taurus), then we could assume that this rally still has a ways to go through next week as the Sun and Venus will continue to apply to the ascendant until Jun 11-12.

If the 9.00 chart is correct, then we might see a pullback early next week. If the 9.20 chart is correct, then the pullback may occur late next week or the week after. Either way, I don't think this rally will last too much longer.

New York slips

As predicted, New York lost about 1% today as the indexes closed at 12,503/1385. This may have been in part due to the Moon-Saturn square. While there is a good chance for a rally tomorrow and into Wednesday, my conviction isn't rock solid. I think we're entering into a potentially difficult period over the next week as Mars applies to the Ketu. The natal Uranus in the 1792 chart sits at 24 Cancer so that may be one possible target for the transiting Mars.

And next week will feature the Sun-Venus (28 Taurus) in tight conjunction squaring the transiting Uranus (28 Aquarius). And remember too that the natal Mars in the 1792 chart sits at 27 Leo. That's forming a t-square which is almost never favourable. So it's hard to see the market moving much higher here and the downside risk is considerable. I think it will probably start moving lower before the end of this week, with the bigger losses occurring next week. I believe there is a genuine risk of a major decline here -- perhaps as much as 5% so we might see the SPX below 1320 at some point in the next two weeks.

The Euro didn't quite get the bounce today that I thought it would as it never really got off the ground and finished only marginally higher. It ended up at 1.5542.

I also predicted Oil would be stronger but that, too, ended up only 0.22 to $127.50. Tomorrow ought to see more on the plus side.

Gold fared somewhat better, so my bullish prediction was partially fulfilled as closed at $897 up 5.50. Let's see if it can stretch out this rally another day.

Market Forecast -- week of June 2 - 6

New York is coming off a modest gain last week and starts at 12,638/1400. Monday looks bearish as Moon will fall under square aspect of Saturn. Tuesday may see a nice bounce back as Moon joins the Sun Venus in Taurus. Friday looks bearish as Moon is in Cancer with Mars and Ketu and Cancer rises at the start of the trading day. Overall, we probably won't end up too far from current levels, although there seems to be more downside risk here.

The Euro slipped under 1.56 and begins trading Monday at 1.5536. I had thought it would fare better, although I was cautious overall as I expected a pullback the following week. As it turned out, I was a few days early. Monday will bode well as Mercury gradually backs away from the negative influence of the natal Ketu. I don't foresee a huge move either way this week, although the the bias seems to be on the upside.

As predicted, Oil fell below $130 last week and begins the week at $127. I think we may see strength Monday and Tuesday as Moon, Sun and Venus are all in Taurus in close aspect to the futures natal Jupiter. There could be another rally towards $130. Any early week highs probably won't hold as the rest of the week looks middling. The week following looks stronger.

Gold had a tough week and fell back to $890. While I had been bullish last week, I did forecast a decline back to the $900 level for the following week so I jumped the gun there also. Gold looks bullish Monday and maybe into Tuesday. But I'm interested to see what the effect of the tr. Mars conjoining the natal Moon in the futures chart. Also, tr Sun and Venus will oppose the natal Mars. Those are some potentially troublesome influences, and yet I'm reluctant to forecast further declines here. If anything, it suggest activity and probably volatility. One possible scenario is a rise towards $910 early in the week and a drop back below $900 towards the end of the week.