Saturday, November 22, 2014

The SP500 heading to 2082 target zone

Randall Ashbourne, an associate of Astrological Investing, posts a weekly market report on his web site,  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

Randall Ashbourne (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.


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