Next week’s eclipse could be the catalyst for lows in gold, soybeans and the S&P 500, notes Susan Gidel.

A New Moon/Total Solar Eclipse arrives on Tuesday afternoon, July 2 while it could still be relevant during the July 4 holiday week. Indeed, the New Moon at 10 Cancer connects with the first-trade horoscope charts of gold, soybeans and the S&P 500 in ways that could set lows.

The eclipse (visible in parts of South America, including Buenos Aries) has a theme of excessiveness. Watch for the impact of young people or news items that have the ability to transform a situation.

Monday, July 1

  • High in 10-year Treasury note: The first-trade Sun is activated from two directions, including: an easy 120-degree aspect from the transiting Moon and Saturn; and a 90-degree square from Mars. Also, the transiting Sun is square to both the first-trade Saturn and Pluto, increasing tension to be released. Look for resistance in the September contract at 128-05, the Pluto price conversion level.

Tuesday, July 2

  • Low in Gold”: The New Moon/Solar Eclipse is opposite the first-trade Sun in gold futures, while transiting Mars is at zero degrees of Leo. In addition, first-trade Uranus is being aspected by three fast-moving planets—Venus, Mercury and Mars. Look for support in August gold first at $1,401 per oz., and then the Venus price conversion level of $1,372, which until recently had kept the lid on prices since 2013.
  • Low in Soybeans: The New Moon/Solar Eclipse is at a 90-degree angle to the first-trade Sun in soybean futures. In November beans, look for support first at $9.03 per bushel, then $8.87. The strongest support is at the planetary price conversion levels of $8.73-$8.75.
  • Low in S&P 500: The New Moon/Solar Eclipse is 120-degrees away from the Sun in the launch chart of the S&P 500 from 1957. Another natal planet typically activated at market lows, Uranus, is conjoined by transiting Mercury and Mars. Look for support at the planetary price conversion level of 2896, with more substantial support at 2863-2865.

Last Week’s Scorecard (through Thursday’s close)

Bullseye!

  • High in S&P 500 on Friday, June 21: The S&P 500 scored a new record high of 2964.15 on the day of the summer solstice. That record remains standing through Thursday, June 27.

Pretty Darn Good

  • High in Soybeans on Monday, June 24: The high was on Tuesday at $9.17 ¾ per bushel. in July beans and $9.41 ¼ in November beans, each below planetary price resistance at $9.38.
  • Low in 10-year Treasury note on Monday, June 24: It was a quick low on Monday at 127-170 in the September contract with a rally to 128-080 on Tuesday. The Saturn price conversion level of 127-07 was tested by the lows of 127-14 on June 21 and 127-12 on June 27.
  • High in Crude Oil on Tuesday, June 25: August crude oil made a high on Wednesday at $59.93 per barrel, breaking through planetary price resistance at $57.20, but stalling at the next level higher of $60.90-$61.00.

Off the Mark

  • High in S&P 500 on Wednesday, June 26: This day’s action was more low than high. The S&P 500 traded in a 20-point range, closing near the low of 2912.

Holiday Hours on Wednesday, July 3

  • NYSE closes at 1:00 pm, reopens Friday at 9:30 am
  • CME Group stock index futures close at 1:15 pm, reopen Thursday at 6 pm
  • CBOT grain futures close at 1:05 pm, reopen Friday at 9:30 am 

The position of planets in the sky as they relate to their positions when a market first began trading can provide clues to potential trend changes. The energy is strongest on the days noted in this post, but it is not unusual for the effect to be seen a day or two either side. See backgrounder “Market Analysis with Astrology” for further information. 

Susan Gidel is editor of the Red Letter Trading Days newsletter.