Update

Currently the SP500 continues a sideways pattern. Wednesday Dec 9, 2009 has the potential to be a 6 week, Major cycle low, however, it was not very deep and just barely broke the 25 dma. Nevertheless it was in the timeframe and the current price structure points to a possible bounce, possibly into year end for a Santa Claus rally.

The period around Dec 18/21 needs to be watched carefully, for it has a number of powerful Astros, which could affect not only stocks but commodities as well, particularly Oil and Gas.

Looking past this period and into mid January 2010 there is a configuration that has been quite repeatable. It is a 3 cycle pass of heliocentric Mercury. See the following chart. The green x’s show when heliocentric Mercury transits through Virgo. Note the middle pass. The SP500 most often rises into this period then drops quickly. Again it is only in the middle pass of Mercury in Virgo.



In addition on Jan 15, 2010 there is a Solar eclipse and Mercury direct station. Both are strong signatures for sharp moves. This in conjunction with the 3 pass heliocentric Mercury point to a period for a rising market and then a sharp decline. Bear in mind these signatures typically point to shorter term moves. The following chart shows recent events for the Mercury direct station (blue circle) and solar eclipse (sold red circle).