07/19/2002 Archived Entry: "Red from the Street:"

Merriman finally threw in the towel, and writes this week an excellent run-down on his cyclical coverage of the financial mkt's with the attendant astrological indicators that he follows. I've seen this 8000-8100 support elsewhere for the Dow mentioned. If that number breaks, who knows. In fact, it looks like the levy has broken for the guy, and he is openly bearish. We should get a rally from a low that sets in (sometime-anytime in the next 3 weeks can seem like an eternity when the floor is falling out), which we can expect moves higher until, meeting up against old support as new resistance, continues going lower.

Instead of being bullish as one might expect, the period between Mars conjunct Jupiter (July 3) and Sun conjunct Jupiter (coming up July 19) began turning into a stock market panic. By Friday, the DJIA had fallen slightly under 8600. By Thursday, the S&P nearby futures had fallen to 900.50, well below the 929 low of October 1998.

For students of cycle studies, the breakdown of the 4-year cycle trough of 1998 is not a good thing. It means that even longer-term cycles have now turned down. These would be the 18, 36, and 72-year cycles. Indeed, it now technically confirms that the best days of the U.S. stock market are well behind us, with the all-time highs being achieved in early 2000, and re-tested (in the DJIA) in May 2001, just before the first passage of the 32-37 year Saturn-Pluto opposition cycle.... According to the history of the Saturn-Pluto cycle, this is just the beginning of what could turn out to become an out-of-control monetary situation by the end of the decade. Contrary to popular belief, the United States does have a precedent for defaulting on its debt. It happened in 1842 during the Saturn-Pluto waning square, eight years after a Saturn-Pluto opposition in 1834.... A break below 8599 in the DJIA points to the next major support level as 8100-8400.