(7 July 2020)  US stocks remained buoyant for the most part to start the week following Monday’s surge in Chinese markets.   Monday’s winning session extended last week’s rally but today (Tuesday) saw some significant selling as investors digested the frightening Covid numbers coming out of the southern US states.  The down day coincided with a bearish Mars-Mercury square aspect that I noted in last week’s post.  This aspect was more likely to deliver some downside since it involved Mars (a generally bearish planet) forming a square aspect which also tends to be more bearish.

It is important to note that the bullish energy of late may be waning as Jupiter has now moved past its conjunction with Pluto.  Typically, Jupiter conjunctions are more bullish during their applying phase and less powerful in their separating phase.  And bearish Saturn is still aligned closely with Ketu (South Lunar Node) which waits for its appropriate triggering planet.

After Sunday’s lunar eclipse, we have entered a more uncertain period, Monday’s gains notwithstanding.  Although they can be powerful in their effects, it is important to note that eclipses often don’t correspond with immediate market outcomes, either higher or lower.  Eclipses can also be seen as concentrations of energy which have a delayed release through the transits of other planets.

For example, the previous solar eclipse on Sunday, June 21 was apparently negative due to its alignment with Saturn.  And indeed, the days following the eclipse were somewhat negative in the markets, but the decline deepened on Friday, June 26 when Mars exactly aligned with the eclipse point.  Mars therefore acted as a kind of trigger planet which released the negative energy of the eclipse.

We could see a similar delayed release of eclipse energy in the coming days.  Last Sunday’s lunar eclipse at 19 Sagittarius itself was similarly aligned with bearish Saturn, albeit only through a relatively minor 135 degree angle (360/8 x 3).   So that could introduce some additional cautionary sentiment into the markets over the coming days.

But it is also important to take note of the next planet that aspects that eclipse point at 19 Sagittarius.  As it happens, the next planet that aligns with that eclipse point is again Mars, a bearish planet.  Mars will square that eclipse point on July 20-21.  If a bullish planet like Venus was due to align with the eclipse point, then we could be more sanguine about the outlook.  However, Mars tends to be bearish and the square aspect is more problematic than other angles.  Therefore, the week of July 20 has a higher downside risk than would otherwise be the case.