Merry Christmas and Happy New Year

Randall Ashbourne, an associate of Astrological Investing, posts a weekly market report on his web site, theidiotandthemoon.com  The following is this weekend's Eye of RA report: Week beginning December 15, 2014 

It's time for me to take a break, so I'll take this opportunity to wish everyone a happy holiday season and, especially, a happy New Year.

Markets tumbled last week as we head into another direct hit of the long-running Uranus/Pluto square due to "finish" ... at last ... in 2015!

The key price levels for the SP500 and DAX were published last weekend, along with still-relevant Weekly Planet levels for the ASX.

Charts for the FTSE, Nifty and some other indices have also been published recently and you can find them in the Archives.

There will be no annual Forecast this year and some major changes for the Eye of Ra next year. It's unlikely the Eye will appear each weekend.

Instead, I'll probably do only one major report each month, incorporating much of the detail I normally include in the annual Forecast.

Hopefully, the changes will allow me more time just to enjoy Life ... as well as writing occasionally, in non-market report weeks, about the broader social changes being influenced by The Spooky Stuff.

Until sometime in early January ... Best wishes and thanks for your company during 2014!

 Safe trading - RA

 (Disclaimer: This article is not advice or a recommendation to trade stocks; it is merely educational material.)
Copyright: Randall Ashbourne - 2011-2014

Astrological Investing's associate, Randall Ashbourne, author of the eBook, The Idiot and The Moon, 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.

Germany joins the USA in all-time Highs

Randall Ashbourne, an associate of Astrological Investing, posts a weekly market report on his web site, theidiotandthemoon.com  The following is this weekend's Eye of RA report: Week beginning December 8, 2014 

 Wall Street continues to make marginal new Highs, though the SP 500 is still shy of touching a major planetary price barrier at 2082.

 Trading on Wall Street was relatively subdued last week, despite some strong astrological aspects involving Jupiter and Uranus.

 There are more of them to come, especially over the next week when Jupiter goes Retrograde, Venus moves to Capricorn, the Sun trines Jupiter ... and we get another exact hit of Uranus square Pluto.

Europe, especially Germany, is now bouncing back from weakness earlier in the year. You might recall that some months ago we talked about the DAX running into long-range overhead planetary price resistance.

It was strong enough to send the DAX into a multi-month downfall. However, the pick-up in performance since the low in mid-October has lifted the German market back into the same territory.

European traders are hopeful that the ECB will now follow Japan, taking over monetary expansion from the US Federal Reserve.

We'll look at the key levels now.

Below is the long-range planetary price chart for the DAX. Midway through 2014, the index ran into the Pluto barrier priced in the early 10,000s, prompting a strong correction.

The index is now making another attempt to breakout northwards. At this stage, the Bird Bird oscillator seems very dubious.

The SP500 continues to fall just short of touching its overhead Pluto barrier in the early 2080s. It's entirely possible the resistance could be breached by a gap Open, opening potential targets in the 2100s.

A couple of weeks ago, we discussed the under-performance of the ASX200 and I suggested a Uranus price line, then priced at 5270 could provide a stronger level of support.

The index had a one-day dive below the level last Monday, but recovered the following morning. The weekly resistance from Saturn lines around 5382 and 5417 need to be overcome before the index has a chance of challenging the August highs. 

Safe trading - RA

 (Disclaimer: This article is not advice or a recommendation to trade stocks; it is merely educational material.)
Copyright: Randall Ashbourne - 2011-2014

Astrological Investing's associate, Randall Ashbourne, author of the eBook, The Idiot and The Moon, and The Idiot and the Moon, Forecast 2014, 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.

Flamboyance or Fear in store this week

Randall Ashbourne, an associate of Astrological Investing, posts a weekly market report on his web site, theidiotandthemoon.com  The following is this weekend's Eye of RA report: Week beginning December 1, 2014 

 American stock indices changed little during last week's Thanksgiving-shortened trading.

India continues to hit new Highs, but now faces a technical challenge after the Nifty hit 8617 last week. That's a precise 100% extension of the first recovery rally from October 2008 to November 2010, anchoring the current rally from the December low of 2011.

Germany's DAX was also a strong performer last week, but many other indices mirrored the go-nowhere behaviour of Wall Street.

The SP500 is still trying to reach the planetary barrier at 2082 shown in last weekend's charts. Astrologically, we are heading into statistically negative Full Moon next weekend, but the key day in Euro-American markets is likely to be Thursday when the Sun trines Uranus, Venus trines Jupiter and Mars leaves Capricorn for Aquarius.

As we've talked about before, trines have a tendency to break barriers and Uranus, in particular, likes to break things. With the Sun and Venus both in Sagittarius interacting with Uranus and Jupiter, we would expect to see some exaggerated moves ... simply because Sadge, the FatBoy and El Weirdo never do anything with quiet good taste and discretion.

So, we're likely to see the professionals return to their desks this week, bouyantly optimistic about where it's all going ... or gripped by fear that they've run too far, too fast.

Thursday should give us a clue.

Safe trading - RA

 (Disclaimer: This article is not advice or a recommendation to trade stocks; it is merely educational material.)
Copyright: Randall Ashbourne - 2011-2014

Astrological Investing's associate, Randall Ashbourne, author of the eBook, The Idiot and The Moon, and The Idiot and the Moon, Forecast 2014, 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.

The SP500 heading to 2082 target zone

Randall Ashbourne, an associate of Astrological Investing, posts a weekly market report on his web site, theidiotandthemoon.com  The following is this weekend's Eye of RA report: Week beginning November 24, 2014 

Wall Street heads into a shortened trading week, with markets closed on Thursday for Thanksgiving and also due for an early close on Friday.

Reportedly, this is now the third-longest Bull market in modern history for American stocks.

It is surpassed only by the 1921-1929 and 1987-2000 Bull runs ... and there are some commentators who believe that we are still only part of the way through the first leg up of a new "supercycle" Bull.

Most of the Western stock indices are not quite as bouyant as Wall Street and the Nasdaq, so we'll spend some time this weekend having a close look at the technical condition of the SP500 across various timeframes, since it is a "key" market whose direction is likely to have an impact on other markets.

Astrologically, the high-energy period during mid-November had apparently little effect on stock prices, though it does seem to have raised the stakes in what is being dubbed a new Cold War between the USA and Russia.

Joe Biden was back in Ukraine last week, as he was in the weeks before the "popular" pro-Western uprising overthrew the country's Russian-backed President.

Vlad won't be happy. Sergei Lavrov thinks the USA now wants to extend regime change from Kiev to Moscow.

Now, let's take a look at the potential targets immediately ahead after Friday's boisterous gaps up in both Europe and on Wall Street. The Pollyanna index is now not far away from running into overhead, long-range Pluto resistance at 2082.

It is the Pluto line at 1878 which put an end, on a weekly closing price basis, to the recent sharp drop. The low of the drop touched the 1823 Neptune line, so it is possible, after some stalling or a correction at Pluto, that the index will make another run at achieving higher prices.

Okay, well that gets the planetary price targets out of the way. Now let's turn our attention to the technical position and we'll use one of the techniques from The Idiot & The Moon ... Bi-BB charts with a fast MACD across the three main timeframes, daily, weekly and monthly.

We'll start with the daily. Friday brought the third big Opening gap since the current bounce began. The fast MACD oscillator isn't particularly happy. The histograms have gone negative and so have the signal lines. They can stay this way for a while before a decline develops, but the oscillator is suggesting further immediate-term gains are facing headwinds.

On a weekly basis, Friday's big jump took the weekly price bar above the upper Bollinger Band. We've discussed before how breaks of the upper or lower bands tends to stall the direction of the trend-in-play, or prompt an intermediate trend change.

While the MACD histograms endorse the rally, the current peak in the rise of the signal lines is a little more muted in its enthusiasm.

A monthly version of the same technique contains enough news to please both Bulls and Bears. The MACD histograms haven't hit a new high for years and the signal lines are flat-lining.

But we should probably also note that the last two Bull peaks in the 500 didn't occur without the index touching, or breaking, the upper Bi-BB barrier ... and that there has been no monthly Close below the upper layer since the first half of 2012.

What is most interesting about the above chart, though, is November's break above the main upper tyne of the long-range pitchfork.

The Australian stock market has been going in the other direction ... and rather strongly. There is reasonably strong potential support not far below last week's Close ... the Uranus level around 5270.

Safe trading - RA

 (Disclaimer: This article is not advice or a recommendation to trade stocks; it is merely educational material.)
Copyright: Randall Ashbourne - 2011-2014

Astrological Investing's associate, Randall Ashbourne, author of the eBook, The Idiot and The Moon, and The Idiot and the Moon, Forecast 2014, 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.

Volatility on temporary hold

Randall Ashbourne, an associate of Astrological Investing, posts a weekly market report on his web site, theidiotandthemoon.com  The following is this weekend's Eye of RA report: Week beginning November 17, 2014 

 There was a muted reaction to last week's high-energy astrological aspects as many of the world's leaders joined each other for meetings in Beijing and Brisbane.

And the only Bear on show was the old Russian one ... with Europe on edge over troop movements in Ukraine, America testy over Russian flights through Central America, and Australia in a media frenzy over Vlad's "flotilla of warships" in the Coral Sea.

Most stock indices we looked at last weekend avoided direct contact with the price levels of the Mars to Uranus/Pluto contacts.

Many, like London and Toronto, did however reach the price zones of the Sun/Venus contacts with Saturn ... and they don't complete until this coming week.

We're now fast approaching the time of year when Western stock indices start moving upwards for a rally into late-December or January, though it can be delayed until after the Thanksgiving holiday in the USA.

I see little point in publishing the updates on last weekend's charts. Wall Street went nowhere; Toronto went up into the 14,800s level; the FTSE made it into the zone I'd circled; Mumbai's Nifty drifted upwards a little; the ASX200, which had been playing exactly in the Mars/Uranus/Pluto zone dropped out of it; and gold, despite some games, did manage to Close the week back above the important 1182 level.

So, now we wait to see if the Sun conjunct Saturn midweek triggers some real action from all that energy.

Safe trading - RA

 (Disclaimer: This article is not advice or a recommendation to trade stocks; it is merely educational material.)
Copyright: Randall Ashbourne - 2011-2014

Astrological Investing's associate, Randall Ashbourne, author of the eBook, The Idiot and The Moon, and The Idiot and the Moon, Forecast 2014, 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.

Important reading:  Randall Ashbourne's The Idiot and The Moon, Forecast 2014 

Kaboom! The Old Gods go to war

Randall Ashbourne, an associate of Astrological Investing, posts a weekly market report on his web site, theidiotandthemoon.com  The following is this weekend's Eye of RA report: Week beginning November 10, 2014 

 Volatility is about to come roaring back, as the little Gods pick sides in an all-out brawl that involves every single one of the big Gods.

We are likely to see volcanic eruptions, earthquakes and tsunamis ... either literally or metaphorically.

It begins this weekend as Venus squares Jupiter before conjuncting Saturn midweek; the Sun will make the same aspects; Mercury will trine Neptune which goes Direct next Sunday.

And Mars will conjunct Pluto and square Uranus. It is a LOT of cosmic energy being triggered over the course of the next 10 days ... and most of it will be concentrated into this coming week.

We've already had a preliminary taste test ... the Republican sweep of Congress and the Senate, the USA air attack on the IS leadership meeting in al-Qaim, the turmoil in Burkina Faso where the military (Mars) has seized control (Pluto) after a mass uprising (Uranus) ousted the President (Capricorn).

As all that energy becomes exact in the coming days, more regimes may topple, more bombs will go boom, more rebels will rise up.

Stand by for what could be one of the most "interesting" weeks of the year.

We will take a look this weekend at the exact price levels where all that energy is concentrated in a number of world stock markets ... New York, Toronto, London, Amsterdam, Mumbai, Sydney - and gold.

The Venus square Jupiter takes place on Monday in Australia and Asia, as does Mars conjunct Pluto; Venus conjunct Saturn and Mars square Uranus will occur on Thursday; Sun squares Jupiter on Friday. The aspects will occur the previous day in Euro-American markets. (This is just the way the international timezone boundary works.)

Basically, the rocket will take off ... or it will all go kaboom.

Pollyanna first ... the SP500. On the chart below, Mars is red, Uranus is green, Pluto is blue. And here's how it works. The rocket is in warp drive if price breaks through the $2057 planetary price crosssing zone. It will be heading for $2082.

But, if it gets strongly rejected from the 2050s, Wall Street may immediately go back into a strong correction.

And the reverse also applies. If Pollyanna drops to around 1990 or 1967 and starts to rise rapidly, it probably means the boosters have been triggered.

It's the same general principle on all other indices. Here's Toronto ...

Above is the weekly chart. Toronto needs to hold the 14,518 level to have a real shot at the 15,200s. The daily chart, below, provides another potential clue to which way it will all go. The Sun/Venus aspects to Jupiter and Saturn are just below the 14,800s. A strong daily break indicates the run to the 15,200s is on.

And if it doesn't break through and starts to drop, the plunge is likely to take it to at least the 14,200s.

The FTSE is next ...

If London starts the week by rising, it is likely to run into trouble in the 6650-6690 range. If it drops into the early 6400s early in the week, it could bounce. The daily chart below shows that a Sun/Venus meeting with Saturn stopped the recent drop. That was a weak semi-sextile aspect. The circled overhead one is a lot stronger in its trend-change ability.

Amsterdam ...
The AEX has been riding Venus upwards and has been stalling at a blue Jupiter. Monday will tell the story ... it will get a boost from the power of the price crossing, or close below last week's price level and be in danger of a drop.

 

Mumbai's Nifty is below. It must break above the 8486 zone by midweek for further rises. If it drops, the 8212/8234 needs to be watched carefully for Support. If the Support fails to hold, the chances of further strong downside increases substantially.

Sydney is below. The ASX200 has been stalled in the Mars/Uranus/Pluto zone for a week. The key price level to hold to provide a rally boost is 5515. There is price crossing Resistance in the 5580s.

And, finally, gold.

The weekly chart is above, showing the Mars/Uranus/Pluto price crossing levels. Our regular Sun/Pluto daily chart is below. I was always a little unhappy that gold continually bounced from the secondary Pluto line at 1182, believing it really "should" hit the primary Pluto at 1158.

It now, finally, might be getting a boost from a false break of primary Pluto, with even further support from a rising primary Sun line. But, as with the stock indices, it is likely to be impacted by this week's severe traffic jam of planetary aspects and needs to get decidedly above 1182 again before we can hope for a sustainable rally.

Safe trading - RA

 (Disclaimer: This article is not advice or a recommendation to trade stocks; it is merely educational material.)
Copyright: Randall Ashbourne - 2011-2014

Astrological Investing's associate, Randall Ashbourne, author of the eBook, The Idiot and The Moon, and The Idiot and the Moon, Forecast 2014, 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.

Important reading:  Randall Ashbourne's The Idiot and The Moon, Forecast 2014

Dive or rally ... which one's the head fake?

Randall Ashbourne, an associate of Astrological Investing, posts a weekly market report on his web site, theidiotandthemoon.com  The following is this weekend's Eye of RA report: Week beginning November 3, 2014 

The exuberance of the stock rally on Wall Street calls into serious question whether it is merely a bounceback, or a resumption of the Bull market.

There was always a chance that the steep dive into mid-October was a Mercury Retrograde head fake, but that was the least preferred of three options.

I indicated last weekend there was potential for the stock bounce to start topping out as early as Monday or Tuesday when the Sun and Venus were due to trine Neptune.

It seemed as if that scenario might be playing out when markets stalled on Wednesday. But! On Thursday and particularly, Friday, Wall Street launched a Moon shot. So, it's certainly possible markets have renewed their Bull campaign.

And it still seems to me to be irrational exuberance. The mid-October turnaround came when a regional Fed-head made noises about continuing QE. Then the actual Fed meeting went hawkish. Instead of turning down, Wall Street continued rising.

And on Friday it went totally ga-ga, ostensibly because Japan will continue the dismal polices which have kept its economy and stock market totally moribund for a quarter of a century. Rational? I don't think so.

The stock market Moon shot was launched when the Bank of Japan and the Japanese Government's main pension fund suddenly announced they would pump trillions more yen into the country's sputtering economy. The Nikkei "soared" ... and many other markets did the same.

Yeah. So here's a quarterly chart of the Nikkei. It doesn't exactly look like skyrockets in flight.

The Wall Street rally is unusual for other reasons ... one of them being three huge Opening gaps. Another of the supposed "reasons" is a surprising jump in GDP. But the increase in "production" was largely in destruction. In other words, it was caused by a big jump in American military spending.

More bombs, more bullets. Think rationally for a moment about the end consequences. It means more terror, not less. The nutbags have already shown they can take this out of the desert dunes and onto the streets of Britain, Canada and Boston. And, inevitably, it means more money on "Homeland Security".

Also, Wall Street's Moon shot is not yet being followed on other markets ... except for India, New Zealand and Switzerland.

Astrologically, we have another round of cosmic turmoil fast approaching. We have the usually negative period of the Full Moon this week, but even stronger potential negatives the following week when Mars conjuncts Pluto and squares Uranus; the Sun squares Jupiter and Venus conjuncts Saturn.

It's the last of those which has a strong track record of changing trend direction. Venus conjunct Saturn aspects are shown with red bars on the chart below and the blue bars are Mars conjunct Pluto.

The astrological aspects suggest there is more trouble and more volatility to come. However, let's look at a few charts and be prepared for whatever comes.

Firstly to the SP500 and the strong rally. The gaps are unusally large.

On the weekly chart below, the bounce started from an "obvious" level, the bottom marker of a trend channel which has defined the price moves since midway through 2011. The new price peak is, so far, accompanied by lower peaks in all three Canary oscillators.

Still, it could be a resumption of the Bull phase, so we need to be aware of the upside price targets if that is the case. The first major target is the blue Pluto line in the 2080s. You will note there was stalling at the 1878 Pluto line and that it did hold the Closing weekly prices on the correction into mid-October. And since the bounce came from the Neptune line at 1823, it wouldn't be unusual for the 2137 line to be hit if the Bull is back in play.

Turning to the ASX200, I indicated last weekend we would need to monitor the state of the Birds when price reached the Saturn line now priced at 5458 to get an idea if the bounce was over or the index would target the 5500s. It certainly looked as if the rally was going to stall at Saturn. But, the Birds got it wrong.

The Big Bird oscillator on the ASX Weekly Planets chart, below, has rebounded even more strongly than it has (the yellow line) on the daily chart. So, as we did with the SP500, we need to be aware of the potential upside targets over the next few weeks if the Bull is back.

Safe trading - RA

 (Disclaimer: This article is not advice or a recommendation to trade stocks; it is merely educational material.)
Copyright: Randall Ashbourne - 2011-2014

Astrological Investing's associate, Randall Ashbourne, author of the eBook, The Idiot and The Moon, and The Idiot and the Moon, Forecast 2014, 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.

Important reading:  Randall Ashbourne's The Idiot and The Moon, Forecast 2014

Stock bounce may be topping out

Randall Ashbourne, an associate of Astrological Investing, posts a weekly market report on his web site, theidiotandthemoon.com  The following is this weekend's Eye of RA report: Week beginning October 27, 2014 

The stock market bounceback, which appears to be irrationally exuberant on Wall Street and decidedly timid in other Western indices, could start to fail in the next couple of days.

There is a chance the steep dive into mid-October was a Mercury Retrograde head fake, which I mentioned a couple of weeks ago.

However, the level of technical damage and the apparent caution almost everywhere but on Wall Street do suggest there is more downside just ahead.

If that is the case, markets could top as early as Monday or Tuesday when the Sun and Venus make a trine to Neptune.

And my reasons for thinking that are not just the intermarket technical divergence. Mars leaves the Fire sign, Sagittarius, this weekend and moves into Capricorn where it will soon conjunct Pluto and square Uranus.

We've discussed this many times. Mars is drive and energy. It will add "power" to the symbolism of Pluto in Capricorn and to Uranus in Aries.

In short, the God of War is about to stir up both the plutocrats and the armed rebels.

So, that's why I'm still inclined to think we are facing the two main scenarios I've been chatting with you about over the past couple of weeks ... either that we are in a major three-legged correction to the overall Bull trend, or that we are in the early stages of an emerging Bear.

The next down phase will probably help us to define exactly which one it is. We'll be looking this weekend at the SP500, the FTSE, the ASX200 and India's Nifty.

I'm not going to spend a lot of time on Pollyanna, the 500. It gets a lot of attention every week ... and it is now fairly clear what will happen with the index if the bounceback fails in the next few days.

The big picture planet price charts have been published over the past couple of weeks. Now we'll zoom-in a little. In an ABC correction, where A is the first leg down, B is the bounce, and the C leg is the last decline, it is relatively common for C to equal A.

So long as Polly doesn't bounce too much higher than last week's Close, the "normal" target for the next downleg takes it down to about the $1776 level. It might double-bottom around the $1824 Neptune price line ... or it could continue to $1722 and still be within the general rules for a "correction" in an ongoing Bull. Too much further than that, however, and we would need to consider carefully whether the Bull has given way to a new Bear.

Now let's turn our attention to the FTSE, starting with the long-range planetary pricing. Begin by looking at the price "zone" between a primary Pluto (thick blue line) currently priced around 6500 and a primary Neptune (thick grey line) around 7000. This "band" was broken only briefly at the 1999 peak, caused a top to the 2007 peak ... and is doing the same again.

Also, look closely at the implications of what happens to the index once that primary Pluto line fails to support Bullish prices.

Now let's look again at a simple weekly technical chart we've used before. We knew that horizontal trading band marked by the two thin black lines was getting close to failing because of the extreme negative divergence building in the Big Bird oscillator.

It has plunged so deeply, it is likely that we will have to see a very clear incidence of positive divergence in the oscillator before we can be sure the FTSE price dive is finished. I've marked an example of this with a black circle. While the price retested its lows, Big Bird made higher troughs, indicating that internal strength was coming back into the market.

So, we know the big picture on the FTSE has some major warning signs, because the index has lost the support of the primary Pluto ... and that weekly Big Bird is suggesting the correction is not over.

The chart below is the FTSE's daily and, yes, it's a big bowl of coloured spaghetti showing ALL the planetary price lines currently affecting the price of the index. All you really need to know is that there is a LOT of resistance immediately overhead ... and that all three Canaries in the oscillator panel are starting to roll over again, so breaching all of that resistance will be difficult.

Turning our attention now to the ASX200 ... and we begin not with planet prices, but with two sets of Fibonacci Retracement levels, the red lines are anchored at the 2003 Low and 2007 High and the blue lines at the 2007 High and 2009 Low.

Their long-range influence is obvious even from a quick glance.

Next is Auntie's Weekly Planets chart I show you virtually every weekend and most of you will be very familiar with it.

And next is my private All Planets chart for the index's daily price moves. The blue Saturn line at 5333 for early this week provided only temporary resistance last Monday and Tuesday. The index escaped on Wednesday, attaching itself to a rising Mars ... and closed out the week trapped between rising Mars and falling Mars.

The green Bird, a fast 6 CCI is starting to falter; but the red Bird, a medium 14 CCI, is still strong. So, it is possible the ASX200 will hit the next upside Saturn at 5466. If and when it does, we would need to take another reading from the state of the Canaries to get an idea if the bounce is over, or will head to the 5500s.

And finally for this weekend, a quick look at the state of the Nifty. My apologies to my Indian readers for not doing this more often. It's my long-range planetary price chart and you can see the Mumbai market has run into resistance.

Please check your own weekly charts for the technical condition of the recommended oscillators to see whether breakout or breakdown is more likely from this planetary price zone.

Safe trading - RA

 (Disclaimer: This article is not advice or a recommendation to trade stocks; it is merely educational material.)
Copyright: Randall Ashbourne - 2011-2014

Astrological Investing's associate, Randall Ashbourne, author of the eBook, The Idiot and The Moon, and The Idiot and the Moon, Forecast 2014, 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.

Important reading:  Randall Ashbourne's The Idiot and The Moon, Forecast 2014   

Fleshing out the 2 main scenarios

Randall Ashbourne, an associate of Astrological Investing, posts a weekly market report on his web site, theidiotandthemoon.com  The following is this weekend's Eye of RA report: Week beginning October 20, 2014 


 Stock markets began bouncing late last week, but it is likely only a relief rally which will be relatively short-lived.

We have a couple of key astrological aspects taking place during the coming week.

The most powerful of these is the solar eclipse New Moon due to occur on Thursday evening in Euro-America and early Friday morning in Asia.

It will take place in Scorpio just after both the Sun and Venus enter the sign.

It's the presence of Venus which will make this eclipse particularly powerful. Scorpio rules debt, taxes and most especially really BIG money. Venus rules material wealth and, according to traditional astrology, tends not to act benignly when travelling through Scorpio.

The other significant aspect is that next weekend Mercury will finish its current retrograde phase.

I indicated last weekend that Mercury Rx can manifest as a head fake. However, I also outlined the two main scenarios now facing markets ... either the Bull is dead and we are now in a new, long-running Bear ... or, this is a major correction likely to run for weeks or months before this post 2009 Bull phase puts on another major rally leg.

So, we'll spend a little time this weekend fleshing out those two main scenarios. I said last weekend that under the major correction scenario, the target for the decline could be as high as $1878 or as low as $1776 on the Pollyanna index, Wall Street's SP500.

I should have said "this" decline, meaning the first leg of of a three-legged decline. It can morph into a five-legged triangle pattern, but that is a level of Elliott Wave complexity which tends to be more confusing than helpful.

In any case, I showed you the long-range planetary price targets which should prove to be important throughout the correction and here's the update.

We now need to see exactly what sort of completed bounce we get before we can even think about predicting targets for the next major leg down.

What we do know is that this is now the second biggest correction on Pollyanna since this Bull market launched itself in 2009.

A lot of commentators are all Awoe! Alas! because the index has broken down below its long-term trendline. Well, yes and no at this stage. Personally, I think log-scale charts tend to be more accurate for an "eyeball" look at the long-range ... and on that chart, Polly is trying to cling on.

The log-scale chart shows how the price has been constrained within a rising wedge ... the thin, red topside trendline and the thick, blue support trendline.

I don't think there's any question that blue trendline is going to be broken decisively. The MACD signal line has gone negative and the peaks in the histograms have gone from mountains to molehills over a long period while the price went higher. Negative divergence.

But, even when the trendline is finally broken, it doesn't necessarily stop the Bulls from launching a rally to do what's called a "kiss back" of the underside of the line before it all then starts really crashing.

Turning now to my home market, Australia. I said last weekend: "Regular readers will know that Auntie is a strongly Neptunian index over the long term, even as she responds to Saturn lines during weekly moves.
 
The next potential Neptune "rescue" level is very nearby, priced around $5150. Note that the index topped out at the $5650 level, so $5150-ish is both a legitimate target and potentially quite strong as a Support level."

And the old bat did exactly as expected ...

The break of the 5150 Neptune level was very short-lived. I'll show you on my daily All Planets chart for the ASX200 below. Now, do NOT try to print this chart, dear reader. Your printer will run out of black ink. Right-click the chart and save it as an image ... and then you'll have a ready-reference guide to help you through the bounce.

As you can see, Auntie topped out with some dithering around the Neptune line in the 5600s and then followed Sun and Venus lines down into the pile-up of coloured spaghetti near the lower 5150s Neptune.

But there were were only intraday breaks below Neptune on Monday and Tuesday. Even Monday managed a close above the line, setting us up for what I'd indicated was a potentially strong Support level.

For a bounce, dear reader, but probably not a complete change in trend.

And finally for this weekend, a quick look at gold and the Sun-Pluto chart most of you will be familiar with.

Earlier in the year, greenback gold found Support at the 1248 Pluto line ... which is now Resistance. However, on the bright side, notice the performance of the Big Bird oscillator.

While the price plunged lower, Big Bird has been steadily making higher troughs. It's a build-up of positive divergence which should have enough power to drive gold prices higher over the next few weeks.

Now I still haven't created a 4Q Archives page ... so you can access the previous two October editions of the Eye from the buttons below.  In the meantime, if you missed the previous two October editions, or want to re-read them, you can access them from the website http://www.theidiotandthemoon.com/eyeofra.html or scroll down in this web site's blog.

Safe trading - RA

 (Disclaimer: This article is not advice or a recommendation to trade stocks; it is merely educational material.)
Copyright: Randall Ashbourne - 2011-2014

Astrological Investing's associate, Randall Ashbourne, author of the eBook, The Idiot and The Moon, and The Idiot and the Moon, Forecast 2014, 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.

Important reading:  Randall Ashbourne's The Idiot and The Moon, Forecast 2014