Stocks extended their rally for a third week last week as a growing number of investors believed that the worst was over and that a new bull phase has begun. In New York the Dow climbed to 7776 and the S&P to 815. In Mumbai, the rally was even stronger as the key indices approached some key resistance levels on prices last seen in early January. The Nifty closed Friday at 3108 and the Sensex at 10,048. This bullishness has lasted longer than I expected and reflects the fact that passing aspects alone do not fully coincide with the movements of markets. In retrospect, the February New Moon in Aquarius on February 24 may have contained a clue to this rally through the close conjunction of Mercury and Jupiter in that chart. In fact, I noted that the chart looked favourable for stocks in March in my weekly forecast at the time. As good as the chart looked, I never expected the March rally to be so strong.
With Mars fast approaching Saturn, this rally is on the verge of turning, and may have already by virtue of Friday's down day in New York. The Sun conjoins Mercury late on Monday as both planets leave Saturn-ruled Uttara Bhadra and enter Mercury-ruled Revati. The net effect of these patterns is not clear, however. Mercury can sometimes get a boost from the Sun if other factors are supportive. By itself, the Sun is malefic and combusts planets it comes into contact with, so there is a risk that this may push prices lower, especially since Mercury is debilitated in Pisces. The Revati influence is perhaps more clearly negative since it is ruled by a fallen Mercury. Some midweek strength may result from the harmonic contact between two benefics, Venus and Jupiter. Since this is a partial strength aspect (they are conjunct in the D8 Ashtamsha chart) the positive effects may be fairly modest. The late week looks more negative as Mercury forms a tense 150 degree aspect with Saturn and Mars moves closer the to Saturn aspect, which comes exact on Saturday.
I note also that the Mars and Saturn opposition this week will aspect the Venus-Mars conjunction in the Houck USA chart on April 1 and 6. An affliction to natal Venus can mean sudden (Mars) loss (Saturn) of money (Venus) that one might associate with a stock market decline, while the affliction to the natal Mars may indicate some significant military action or other expression of violence. I see that the head of GM, Rick Waggoner, has now been asked to step down by Obama, so that also fits with the symbolism of an afflicted Venus, which represents vehicles. This may prove to be a difficult week for the auto industry.
Gold may move higher this week with some nice aspects in the GLD chart. Crude oil looks like it will eventually move lower by week's end. Dollar recovery to likely continue.
