April 18, 2011 Update

Although we are still looking for a crest in the SP500 late May to mid June the next couple of weeks look particularly volatile. Monday April 18 in particular has Mars opposing Saturn just before the opening which should equate to some very negative energy on Monday. Chart wise there seems to be stiff resistance around 1320 - 1322. If this is broken on good volume the SP500 could advance quickly. Support can be found in the 1300 - 1305 area a break of which could see the indexes looking at the 1275 - 1280 for support. See the following chart for fib retracements.











On a shorter term hourly charts we can see MACD in negative divergence to price from mid March to the April 14 low. The MACD has now made a higher high but is rolling over, short term on good volume. This chart, with the negative Astros, point to a down day on Monday and possibly the early part of the week. See the following hourly chart.















We are also looking for a trough to the major cycle (5-7) week in the next 2 weeks. April 14 could have been it, but should be watched closely.

The next two weeks looks very volatile, with a number of major transits.

In general we seem to be moving from a period where Mars was dominant ( wars, aggression, explosions bah blah) to a Venus period where things of value and attraction dominate. We do have heliocentric Mars conjunct Uranus on April 17, so we could get one more blast.

Geocentrically we have the following Venus aspects
April 20 Venus enters Aries
April 22 Venus conjunct Uranus
April 27 Venus square Pluto
April 29 Venus opposition Saturn.

Any of these could mark a turn. In effect Venus will be forming a T square with Uranus / Pluto / Saturn during the April 22-30 time period. This could be pointing to the debt crisis taking centre stage once again. The FED reports on April 27th.

As stated the next 2 weeks should be volatile. If we had to pick one day for a market turn it would be April 25. If the SP500 is heading down into April 25 look for a reversal up. If the SP500 is up the week of April 18 then April 25 may mark a serious reversal down.

Any Astros dates given should be +- 3 trading days at a minimum, with longer term Astros +- many weeks.

Heliocentric Mercury enters Sagittarius on April 22 and geocentric Mercury goes direct on April 23. Historically the first few days of heliocentric Mercury in Sag are usually positive for Gold and geocentric Mercury going direct negative.

The attached chart shows a recent history, small red x's are helio Mercury in Sag and the blue arrow pointing right is geo Mercury going direct. In addition the moon enters Sagittarius on April 20 which can also be beneficial for Gold.

If Gold starts to go down next week I will bill looking for a quick sharp reversal back up early in the week of April 25th. This would equate to a major cycle low then back up into the last major cycle of this primary cycle.

If Gold continues up the week of April 18 then I would look for a reversal down the week of April 25th.

On the negative side Gold stocks are not keeping up with the advance in Gold. This type of divergence between Gold stocks and Gold prices can turn out to be negative for Gold. At this point the advance seems to be well entrenched and should continue up.