(23 November 2022)
US shares prolonged their rebound Wednesday as Fed minutes steered a
willingness to sluggish the tempo of rate of interest hikes within the face of
moderating inflation pressures. The S&P 500 pushed above the 4000
stage to 4027 and got here to inside a stone’s throw of the 200 day transferring
common of 4059. The rally wasn’t too stunning given the bullish
seasonality at Thanksgiving and the beneficial Mercury-Venus and
Solar-Jupiter alignments this week.
How lengthy can this rally final? The planets are pointing in direction of a
pullback within the days forward. Jupiter modifications course right this moment (Nov 23) as
it ends its four-month lengthy retrograde cycle. Whereas not often a
decisive affect, the change in course of a serious planet like
Jupiter can generally sign a pattern change available in the market. Extra
essential, nevertheless, is that Mars is because of align with Saturn early subsequent
week.
On the face of it, the Mars-Saturn alignment could not look that dangerous
since it’s a seemingly extra constructive 120-degree alignment.
Nonetheless, there may be good purpose to assume that sentiment may worsen
considerably. First, the Mars-Saturn alignment at 25 levels of Taurus
and Capricorn, respectively, will recreate the identical Mars-Saturn
alignment in late September that coincided with vital draw back and
an interim low. This time round their instructions might be reversed
since Mars is now retrograde whereas Saturn is transferring ahead.
Beforehand, Mars was direct and Saturn was retrograde. So whereas it’s
not precisely the identical setup, it’s shut sufficient to warrant our consideration.
The opposite issue to think about is that Mars will oppose each Mercury
and Venus subsequent week. Each of those alignments are bearish, not solely
as a result of Mars doesn’t mix effectively with Mercury or Venus, but additionally as a result of
the opposition side is often harder. The truth that Saturn
may even be current within the alignment may complicate issues considerably
and introduce the potential of brief time period strikes in both course.
Moreover, we must always be aware that the equal angular separations
of key bearish planetary pairings. As a rule, at any time when bearish
planetary pairs (i.e. people who embrace both Mars or Saturn) are
separated by the identical angular distance as different sluggish transferring planetary
pairs, declines develop into extra probably. Subsequent week, we could have not one however
two such bearish pairings because the Mars-Uranus separation might be 33
levels and this can virtually equal each the Uranus-Chiron pairing (34
levels) and Saturn-Neptune (33 levels). The resonance of Mars-Uranus
and Saturn-Neptune are notably bearish since each are adverse
influences. Whereas the accompanying chart is solid for Monday, Nov 28,
we must always be aware that the bearish affect will lengthen all through the
week.
Considerably, there aren’t any probably offsetting bullish Jupiter
pairings, even involving faster-moving planets such because the Solar, Mercury
and Venus. The Jupiter-Neptune separation is 6 levels whereas the
Jupiter-Chiron separation is 14 levels. Neither pairing finds an
equal separation with the Solar-Mercury (=11), Mercury-Venus (=2) or
Solar-Venus (=9). The absence of any optimistic planetary pairings
subsequently enhance the percentages of some draw back subsequent week.
For extra particulars, take a look at my weekly subscriber e-newsletter
which is revealed each Sunday. Along with reviewing the important thing
planetary and technical influences on US and Indian shares for the brief
and medium time period, I additionally present an astrological evaluation of potential
upcoming strikes in currencies, gold and oil.
These updates are often posted midweek. You may be notified of latest posts by following me on Twitter.