with Anthony, ZigZag & Platy
The projected bounce forecast by the AstroCycle model eventuated today as the Dow Jones Industrial Average rose 135pts and the SPX posted a 21pt gain.
Delving deeper into the AstroCycle perspective, on Tuesday May 15 Venus began its retrograde phase “backward movement” of around 6 weeks into late June. Venus is associated with those things concerning agreements particularly in the field of finance and is generally seen as positive for the markets, however, when a planet turns retrograde it acts abnormally.
On Wednesday 16 May Jupiter entered Taurus, normally this would also be positive for the markets. With Jupiter representing expansion and opportunity and representative of the banking industry. (Jupiter Asset Management & Jupiter Investments & New Star Asset Management)
However, as Jupiter is travelling with the sun any positive energy is being burnt up or “combust” by the sun’s presence thus nullifying the “positive energy” of Jupiter.
As we experienced in the preceding days on May 11 JP Morgan announced a $2bn trading loss and the market was dragged down into 20 May as finance and debt worries persisted.
Looking closer at the current AstroCycle i have previously suggested that we may see weakness at a wave 4 high due sometime in the 22-23 May time window as presented by the graphical AstroCycle model and the previously posted SPY chart (https://changeintrend.files.wordpress.com/2012/05/spy.png)
It is interesting to note that on May 22 the moon is also conjunct Venus. When heavenly bodies are conjunct it means that they appear from earth within an orb of approximately 8deg. and their power or energies are combined. Again there is a “but”, as Venus as previously highlighted as travelling backwards the moon may be the catalyst to trigger additional negative events in the financial markets.
I have also noted that the prior low due at the major turn point on 9 May was stretched into 17-18 May at the proceeding low. It is possible therefore that the major low due in early June exhibits this same behaviour posting a low then a lower low into 13-14 June, this would of-course void the current wave count and i am still in favour of an early June low followed by a higher low into 13-14 June, but it is worthy of a mention for planning and strategy purposes.
A quick look at the volatility bands shows that after the recent touch of the lower support band we are now moving up to test the upper resistance band in the 1328 region.
The USD is also flirting with its lower support band but suggests there is additional room to the downside.
Another interesting observation supportive of further weakness is the current cycle progression of the miners which is showing that we too are moving into a high in the 22-23 May time window.
I will be keeping a close eye on the cycle progressions, geometric analysis and astrological events moving into June which will help in identifying the true wave 5 low.
My upside target of SPX 1329-1333 (SPY 132.9-133.3) remains with a strong finish into the close a good opportunity for initiating a short position.