AstroCycle Is Short Term Bullish

The AstroCycle is a graphical representation of planetary movements and positions relative to other planets within our solar system. It is believed by some that the alignments of the planets can cause behavioural changes in humans thus affecting the investment decisions of speculators. Sceptics will always exist or at least beliefs are constrained by an individuals perception, however the below chart proves that the planetary positions are predictive of future market conditions. The fact that we breached the prior projected time cycle low due on 9 May was a warning that lower prices were ahead. It also signifies that the next major low due in early June will also be a lower low. The Facebook IPO is likely to be positive for the market as we enter a period of a new moon over the weekend plus a couple of days spillover into a 22-23 May high before rolling over once again into early June.

The natural cycle is a solar/lunar cycle which upto 9 May projected low has done a decent job at projecting the next move in the S&P500. The Natural Cycle is fairly consistent with the AstroCycle accept that the Natural Cycle is projecting a higher peak into the end of May in contrast with the lower peak in the AstroCycle. The low in June is fairly consistent with the AstroCycle resulting in a 4-6 June low projection.

The S&P500 Volatility Bands are a proprietary method for measuring overbought/oversold conditions in volatility regularly seen during extreme market moves at capitulation lows and blow off tops. The band levels should be marked on individual charts to give an indication of the trading range. Currently the market has been in a down trend since price clipped the resistance band on the 1st May. We are now at extreme oversold levels and are due for a bounce.

Miners moved out of a projected cycle low, again this Natural Cycle progression is confirmation that the previous major low due on 8 May was breached. This should result in a lower low in Miners into the June time frame. The miners cycle is also projecting a top in the 21-22 May time window before moving down into early June.

A look at the volatility bands is showing that the miners have bounced out of a breach of the volatility support band on the 15 May and yesterdays high touched the resistance support band. Keep a close watch on the daily range hugging the upper resistance band into the 21-22 May time window. A lower open would be a good place to buy the miners for a short term trade to the long-side.

The USD finally closed lower following its meteoric rise. The Natural Cycle is indicating that we should be down into May 21-22 which is supportive of a short-term equities high.

The breach of the upper resistance band finally led to a lower close in the USD. Although downside is projected i expect that it will be limited with a lower support boundary at 22.40

I have marked the resistance bands on a chart within the context of a pitchfork which shows the ideal zone for a pullback into 21-22 May 

Many Thanks

Anthony