|Wall Street in Santa mode?|
On Tuesday, Mercury trines Uranus and on Thursday, Jupiter makes a trine to Saturn.
They're particularly significant for Pollyanna, the SP500, because the index has been range-bound within those planetary barriers for the past three weeks.
I'll show the relevant chart and the key price levels to watch on Tuesday and Thursday in the main body of this weekend's edition.
A trine represents an easy flow of energy. Effectively, the impact is the rapid removal of obstacles. And that's why we may well see breakout ... or breakdown ... this week.
Of the two, it's the Jupiter/Saturn aspect which is the more important because these two are regarded as the business planets. The trine, which is in effect for several months, suggests a period of steady and sustained expansion, which may be why we're seeing some better economic data.
But trines can represent a high point in the cycle, when the "easy flow" of energy really translates as "it doesn't get any better than this".
That's why it'll be important to monitor the price levels on Tuesday and Thursday to see how the 500 reacts.
Our first chart this weekend shows Mercury and Uranus price levels (pink and yellow) and the Jupiter/Saturn levels (dark blue and light blue).
Pollyanna's prices crept into this high-intensity zone three weeks ago and has been testing the barriers. That's why I think we could see a breakout, or a breakdown, this week.
If the index is going higher, it should decisively clear 1808.57 on Tuesday ... as well as 1811.63 on Thursday. If the index hits those prices, pretty much precisely, on those days and begins to rapidly back away from them, it'll be another warning sign.
But we also need to watch the downside levels ... 1791.32 on Tuesday and 1788.27 on Thursday. A decisive Close below those levels is likely to signal strong, further correction.
Most major world indices have been in a significant correction mode for several weeks. It is largely only Wall Street and Germany which have been hitting all-time Highs.
Pollyanna's drop last week bounced again from the red line parallel of the rally channel the index launched into a year ago.
Below is a close-up view of that chart. Negative divergence continues to build in the Big Bird oscillator, which hasn't recorded a new peak since October.
Anyway, the Mercury-Uranus and Jupiter-Saturn price levels are likely to provide the key to the next intermediate-term move.
Last weekend's "potential for a golden bounce" died virtually immediately when the midnight cowboys did another paper gold dump.
There is all sorts of speculation about exactly who is behind these moves. Most experienced players believe it's a central bank game, especially since some of those banks are now raising the spectre of charging people to keep money in savings accounts, rather than paying interest to depositors.
We're entering a new and dangerous phase of the Uranus/Pluto square, especially with Uranus due to go into Direct motion again on December 17.
The central banks seem to be trying to make gold dangerous ... and saving money even more dangerous, since it'll be decimated by both fees and inflation. In short, they want us to spend ... or buy stocks. And they'll just hit the go-faster button on the printing presses.
But that's a discussion for another day. Gold needs to reclaim the Pluto price zone from 1249 to 1270 before there's another chance to bounce substantially.
I'm in the process of researching and writing Forecast 2014, which I hope will be available in the first few days of January. After next weekend, the Eye of Ra will probably take a break until then so I can concentrate on finalising that report.
Safe trading - RA
Astrologicalinvesting.com note: Randall Ashbourne's Forecast 2014 will be available to purchase in January 2014 at
www.astrologicalinvesting.com as well as www.theidiotandthemoon.com
Astrological Investing's associate, Randall Ashbourne, author of the eBook, The Idiot and The Moon, and The Idiot and the Moon, Forecast 2013, writes a free weekly column titled, The Eye of Ra on his web site in which he explains the potential impact of astrological aspects and the current state of technical conditions. Ashbourne's charts are revealing illustrations of exactly what has occurred in the market and the probability of what to expect.
Randall Ashbourne's Forecast 2014 will be available to purchase at www.astrologicalinvesting.com/html/shop.htmlwww.astrologicalinvesting.com as well as www.theidiotandthemoon.com
(Disclaimer: This article is not advice or a recommendation to trade stocks; it is merely educational material.)
Copyright: Randall Ashbourne - 2011-2013