SP500 Volatility Continues

SP500

For the SP500, cycle-wise Feb 11 was the Primary cycle trough.  1 that started on Aug 24th. Feb 11th was a slightly lower low than Jan 20th low. Jan 20th was the low for a number of other indices. Feb 11th should start a new nominal 18 week cycle in the SP500 and we are entering the 5th week. We most often see a nominal 6 week cycle to start a new nominal 18 week cycle. The 6 week cycles has a range of 5 to 7 weeks so we are in the time frame for a crest for the new 6 week cycle.

My outlook is bearish going into the Spring due to the Astrological aspects being formed, namely the Saturn/Neptune square and the Jupiter/Saturn square. There are others. These 3 planets will be forming a powerful T-Square in mutable signs.

For the markets, this should be a wild trip up and down. I'm looking for a volatile market in March and an explosive environment in April. April may see some violent events The key dates will be in the April subscriber letter.

The Uranus/Pluto square is still in orb but will soon be fading. March through June of 2016 looks troublesome and very volatile. I'm looking for two and possibly 3 lows from now into June with one of the lows coinciding with the current nominal 18 week cycle. The new nominal 18 week cycle which started on Feb 11 is therefore forecast to end as a trough approx. 18 weeks hence. That puts us in the week of June 13 with a range from May 30 to July 4th .

The week of June 13th, just discussed is the week for the next Saturn / Neptune waning square with Neptune going retrograde earlier in the week. This is a potential time for a more significant low.

There was also a Saturn parallel Pluto aspect on Feb 9, 2 days away from the important Feb 11 date. Watch the days around April 28 for a possible low or start of a move down when Saturn is parallel Pluto once again.

The rise off the Feb 11 low has been more bullish than normally expected but this may be due to the planets in changeable mutable signs. Price is now above the 15 day sma and 45 day sma. The 45 day average is the 1/2 cycle to the 90 day or 18 week and the 15 day average is the 1/2 cycle to the 30 day or 6 week.

The ALERT sent out to subscribers on March 5th will be updated this weekend with one potential critical date.

From last week, the high we were looking for on March 7, 8 came in 1 trading day early on March 4th. We were not expecting the large increase on March 11 but it is in the timeframe where the 6 week cycle is still going up and with all the planets mentioned in mutable signs, it's the time for large price swings in both directions. Watch for these around the key dates we've mentioned.

The time frame around March 23rd where we have the next Jupiter/Saturn square with Saturn turning retrograde would be good timing for a turn. This signature has a history of turns, both up and down. The fact it is the 6th week hints it will be a low. More price action is required to confirm this. Before this happens we have the Jupiter/Pluto trine on March 16th. The latter aspect is somewhat unreliable but may be identifying a nominal 6 week cycle high near this date. There's not much in common between Jupiter and Pluto.

Taken together Jupiter trine Pluto then Jupiter square Saturn should be identifying a period of great volatility.

The "Total Solar Eclipse on the evening of March 8th, New York time" turned out to be a non-event on the exact day. The subscribers letter described the potential long term effect of Solar Eclipses. We haven't heard the last of this eclipse. Watch March 14 and 15, geophysical events, markets and Syria. We have already seem some activity from this eclipse. The Moon was in almost exact square to the point where the eclipse took place on March 8th when the 7.8 earthquake hit off Java on March 2nd. This eclipse was also part of a T-square with Saturn acting as the focal point. That meaning the energy of the eclipse will be expressed through Saturn which can be restrictive and is in Sagittarius a mutable, fire sign, the sign of religion, nationalism and patriotism.

Mars leaves Scorpio, where it has given Gold a huge thrust up and enters Sagittarius on March 5. This results in both Mars and Saturn in Sagittarius , a signature for a religious conflict or the amplification of one. Water may be a problem, too much in some areas, none in others.

Starting in Mid-March there is a configuration on a cycle chart pointing to either a possible religious battle or trade war. Astrological forecasting is a process of identifying periods of time where the Astrological energy points to possible events in the future. There is similar, but stronger energy in mid-April for this type of event.

I believe we are close to longer term cycle bottoms, both the 6.5 - 7 year cycle and the Kitchin cycle, 3.3 years (or 40 months). The Kitchin cycle probably bottomed on Feb 11th. Many markets made lows that day or Jan 20th.

I'll be watching the U.S.A financial system/currency in follow up to the video from the February 29 post. This should be a long process. Note in the video the last similar occurrence took almost one year to see an effect.

Mercury will start it's translation of this Saturn/Jupiter/Neptune T-Square from March 11 -15. On the last date, March 15, Mercury will pass over the point of the March 8th Solar Eclipse adding to the volatile environment. This may be an important day.

With the longer term market cycles we use the Astrological aspects and Astrological events to determine a more exact time. Note: I have taken off the brief description of the Uranus/Pluto waning square. Longer term geocentric Astrological cycles that are coming up include:

Jupiter waning square Saturn
- in the middle of a 3 pass, 2 exact hits to come this year "The business cycle and direct effect on European history. Major changes will be occurring in Europe as result of the refuge migration. There is a major sign change coming up when Jupiter and Saturn are conjunct in 2020. More on this 240 year conjunction in a future post."

Saturn square Neptune
-in the middle of a 3 pass, 2 exact hits to come this year Saturn is about social order, structure and regulations. Neptune can be politically unrealistic and a desire to avoid confrontation. It can be devious, underhanded and use subversive tactics.
"This aspect is often present near times when there is a change in trend for interest rates or inflation. It can also be a period of epidemics, pandemics suffering, depression and money valuation problems. This could be a change in the world's reserve currency or issues around it. A large increase in precious metals is also possible as it is a money valuation issue. This 36 year aspect has been associated with political changes, reforms and development of socialism. One wonders in regards to epidemics and sickness, would this be natural illnesses or man-made." If you feel depressed or not at ease this aspect may be the cause. One of these planets may be hitting a planet in your horoscope.

On the following weekly chart of the DJIA, the red squares are Jupiter square Saturn and the green squares are Saturn square Neptune. The lows mentioned above should be completed by the last green square.

For 2016 we have Jupiter, Saturn, Neptune and the North Node in mutable signs. In addition both Solar eclipses are in mutable signs. Mutable signs are about flexibility and the ability or need to change. They are also about things that are not in control and extremes. We are in for a wild ride for the next couple of months in the markets and other areas of life.

With all these planets in mutable signs one might expect a fast changing, exciting, fun environment. Let's not forget the Saturn is the focal point of a T-Square, with a square to Neptune. Amongst other things Saturn is fear. This could be pointing to life threatening epidemics and with Neptune this could mean water borne diseases. Natural or man-made?

Saturn is in Sagittarius which rules the law, religion, philosophy and science. With the square to Neptune is a good signal for a religious message that gets perverted. With Mars joining Saturn in Sagittarius on March 5th watch for a pickup in current hostilities.

Charts we have not shown for awhile. The first 2 charts are daily charts of the SP500, and the Russell 2000. The horizontal blue lines are the average longitude of the planets Jupiter, Saturn, Uranus, Neptune and Pluto on all 3 charts This average is converted to price and displayed on the charts. Notice how well they have acted as support and resistance. The SP500 went through resistance close to 2013. I'm watching to see if it holds above that level.

The second chart is the Russell 2000. This index is subject to far less manipulation than the SP500. Notice how well it respects the Astrological average price lines. It's too bad we have to bring up manipulation but the reality is, it happens.

The other chart we haven't shown for a while is this Fan which started on March 6, 2009 at the low. The dark blue line has acted as support most of the way up. It is the 50% line or 45 degrees. The red line we have just touched is 61.8%. It hasn't been touched since Oct. 2011. The black vertical lines is a 512 cd's (calendar days) cycle which next falls on March 9, within one day from a powerful Total Solar Eclipse. 512 cd's, calendar days is a fairly long period so we should allow +- 5 td's. It has been found at highs and lows. This is shaping up to be a high for the current nominal 6 week cycle .I've added Fibonacci arcs (light blue).

Other longer term cycles that may be close to seeing their lows in the next couple of months are the 6.5 - 7 year cycle. I'm looking at the period from now through the spring of 2016 as a potential time period for these cycles. They are long term cycles and need a broad orb. Assuming the 2009 low was an 18 year cycle low, we may be looking at a 9 year cycle low late 2017 - 2018.

I was asked for my long term view and here it is. I'm looking for the world wide economy to be basically down until 2020. This coincides with a long term Astrological phenomenon known as Tigonalis which involves the Jupiter / Saturn conjunctions. Every 240 years the conjunction of these planets changes elements. In 2020 the Jupiter/Saturn conjunction will occur in Aquarius, a fixed, air sign. I expect dramatic technological developments leading into this time which should be, like the internet, life-changing developments.

The following daily chart of the SP500 shows the 45 cd (calendar day) cycle. The next hit is March 30.

"In a time of universal deceit, telling the truth becomes a revolutionary act."
-- George Orwell