1. The market has cleared the picture with a typical holiday gap to the upside as we have broken above the descending wedge consolidation pattern in the SPX above 1335. NDX closes the downside gap and we are now in the final screw the bears out short covering with a so called Greece ( 2nd or 3rd bank bailout ) rescue promise. Actually we are very crowded now at the 30th of June as QE’2 ends , a new IMF head will be named and now even the new rescue package of Greece joined the party. That promises to be a wild one as 3 days later Uranus turns retrogade which promises extreme volatility around end of June early July.
The target given by he formation of the SPX is the 1370-75 level – which was one of my most likely scenarios anyway. Since 230 IPO’s are in the pipeline and some more Linkin screw ups shall be placed they want to keep the dice rolling as long as possible. Still I do not think the upside has much more than 2 weeks left til the Full Moon in Sagittarius around the 16th which will be in a benign angle to Neptun , close to that date Saturn goes stationary on the 13th in a close square to Pluto. That are combined with the Jupiter factor described below very bearish pattern especially in that combination. The market lost quite some bullish sentiment and is rather neutral right now.
For the past 18 months, this column has correctly identified the “Asset Inflation Express” that would be in force concurrent with Jupiter and Uranus both entering into Aries last May-June 2010. Not to sound arrogant, but I am unaware of any other market analyst who can make that claim. But at the same time, I humbly acknowledge the insights of legendary market trader Ted Lee Fisher, who provided me with the basis for that idea while I was writing the Forecast 2010 Book in November 2009. He proposed the possibility and asked if there was some astrological signatures that would support it, as nearly everyone at the time was convinced the stock markets of the world were about to crash again. I asked computer programmer Sergey Tarassov of AIR software if he could provide a graphic correlation of Jupiter transiting through the signs of the zodiac over the part 100+ years, and also provide a reference as to the last time Jupiter and Uranus were in conjunction and also both in opposition to Saturn, as was the case in July-August 2010. He obliged and to my surprise, both were in a very bullish part of their cycles, and this bullish correspondence was not about to end. To the contrary, these planetary positions showed a market that was about to really take off, especially after June 2010. These graphic correlations and my interpretation of them are provided in both the Forecast 2010 and Forecast 2011 books.
The reason I bring this up now is because Jupiter is leaving that sector of the sky next Saturday, June 4. It ingresses into Taurus. A closer examination of its correlation to the U.S. stock market reveals that prior crests actually peaked within 7 degrees of the Aries-Taurus border. That time frame extends from May 2 through July 22, 2011, and then it returns partially to this sector of the heavens between October 2011 and March 2012, due to Jupiter’s retrograde motion.
The point is that we are at a critical point in the orbit of Jupiter around the Sun. A long-term crest in the stock market is due, and a multi-year bear market is scheduled to commence once this “Asset Inflation Express” runs out of gas… er, cosmic energy.