Index score Trend 1 day ago 1 week ago
46-54 neutral 43 46
(Bearish 0-40; Neutral 40-60; Bullish 60-100)
Comment: Negative Divergence in effect
Stocks extended their rally on Wednesday on hopes that Canada would join the newly-minted US-Mexico trade agreement. The gains came despite another neutral FAI index score of 43. Stocks have generally continued to rise over the past week despite index scores falling from the 70s in mid-August into the 40 to 50 range. This may simply reflect a source of error but it could also signal that the index is ahead of the curve.
This is perhaps analogous to how market breadth may narrow before a correction despite the major indexes still rising. Technical indicators like Bullish Percentage and Advance-Decline volume are examples of these breadth indicators that often turn bearish and exhibit a negative divergence before the market falls. In that sense, they provide an early warning signal for possible future shifts in direction.
Divergences can be useful, but I would like to fine tune the index so it reflects the ups and downs of the market more closely. Therefore, I have now revised the weightings of the index. I suspect the Moon component needs to be reduced down to 20 from 30 for starters. The usually bearish Full Moon phase has shown zero effect thus far during this cycle. That will happen sometimes, of course, but it means that its weighting should reflect its more intermittent nature.
I would think natal alignments with the NYSE chart (and the tech-heavy NASDAQ) and transit alignments should be weighted more heavily, such as from 20 to 25. I have omitted separate consideration of Jupiter and Saturn. Their conditions will now be included in the different transit alignment charts.
The index tomorrow looks neutral again with a range of 46-54. The Moon makes a bullish opposition with Venus in the pre-market hours in New York so that could bode favourably. Once the Moon leaves the nakshatra of Revati and into Ashwini (and Aries) around 10.30 a.m., there could be more volatility. The afternoon square aspect with Mars hints at greater downside risk, even if the Moon’s weighting is reduced in our index model.
Readers interested in a more general weekly overview can refer to my Market Forecast (see bottom). And I offer a much more detailed discussion of short, medium and long term market trends in my subscriber newsletter.
Components:
Moon 6-12/20
The Moon is bullish in the pre-market near sunrise (12) but looks more bearish by the afternoon (6).
Sun 5/10
The Sun looks neutral here in the aftermath of its alignment with the Lunar Nodes.
Transit Alignments 13/25
The bullish Jupiter-Neptune is still close enough to matter here. The conjunction of Venus with the Mars Node looks may be problematic, however.
NYSE Alignments 10-12/25
Mercury-Jupiter is still bullish and placed in a sweet spot in this chart. Venus is exactly aspecting the natal Moon so that is another plus. However, the late afternoon Mars-Moon square will line up fairly closely to the natal Saturn. That reduces the overall bullishness by the afternoon.
NASDAQ Alignments 12/20
The Mercury-Pluto alignment resonates with the Sun-MC in this chart. That looks somewhat positive. The ongoing Saturn-Uranus is very bearish but it needs a trigger to release its energy. For now, the NASDAQ chart still seem leans bullish.
Financial Astrology Index for Wednesday, 29 August 2018
Financial Astrology Index for Tuesday, 28 August 2018
Financial Astrology Index for Friday, 24 August 2018
Financial Astrology Index for Thursday, 23 August 2018
Financial Astrology Index for Wednesday 22 August 2018
Financial Astrology Index for Tuesday 21 August 2018
Financial Astrology Index for Monday 20 August 2018
Financial Astrology Index for Friday 17 August 2018
Financial Astrology Index for Thursday 16 August 2018
Financial Astrology Index for Wednesday 15 August 2018
Financial Astrology Index for Tuesday 13/14 August 2018
Background and disclaimer
The Financial Astrology Index (FAI) has a theoretical range between 0 (all bearish) to 100 (all bullish). Most of time, it should move between 20 and 80. Readings above 60 should be considered bullish, while readings below 40 are bearish. Readings between 40 and 60 are neutral.
It may be read in a similar way to technical indicators such as the RSI and Stochastics which show overbought and oversold conditions in the market. A number above 80 is very bullish and suggests a strong up trend. In some situations (e.g. near resistance, in a bearish market), this may also indicate a heightened risk of a reversal lower. The trend in the FAI is at least as important as the actual value in terms of understanding possible future price patterns.
As always, it is not intended as a substitute for established stock market technical indicators. If anything, it is intended to stand alongside them and should be treated as an additional source of information — just another tool in the investor’s toolkit. Fair warning: this is still experimental and more of a work-in-progress. I will likely be tweaking the relative weights of the different factors as I go.
By way of disclaimer, let me state the obvious: do not use this index as a stand-alone method for investing. There are simply too many unknowns in astrology. Astrology is best used as a supplementary source of information in tandem with other technical and fundamental approaches. This is not to be taken as investment advice. For informational purposes only.
