Stocks fell again last week as the prospects of further interest rate hikes and negative global cues weighed down sentiments.

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This bearish outcome was largely in keeping with expectations as I thought the late week Mars-Saturn aspect would prompt more selling pressure.

The aspect was exact on Thursday and that served as the focus for the negativity as stocks declined after Tuesday and some early-week gains.

The gains coincided with positive aspects between the Sun, Venus and Neptune which allowed for some passing optimism before bearish Saturn strengthened late in the week.

The current bear market is still very much in place as investors continue to grapple with serious concerns on a number of fronts.

The US economy still looks weak as the Federal Reserve ponders new stimulus measures to spark some growth. Fed chairman Bernanke’s speech last Friday left the door open for more quantitative easing in September as he offered assurances that more stimulus would be forthcoming, if deemed necessary.

The possibility of further injections into the financial system is perhaps a reflection of a somewhat stronger Jupiter. Jupiter is slowing down ahead of its retrograde station on Monday and is, therefore, picking up strength.

The fact that Bernanke did not come out and announce QE3 last week was perhaps a reflection that Saturn is still a formidable force with its emphasis on caution and restraint.

While Jupiter’s optimism may have played a role in the Fed’s commitment for more stimulus down the road, Saturn likely prevented it from actually occurring.

This week looks somewhat better for the markets as Jupiter is more prominent. At the same time, however, the ongoing Mercury-Rahu aspect could create uncertainty which could undermine any optimism.

Mercury has now ended its retrograde cycle, but its forward motion is very slow so it may be wise to exercise appropriate levels of caution.

On Monday, the Moon and Venus will be in aspect with Jupiter so this could lift the mood.

This aspect begins to weaken by Tuesday, however, so that is perhaps a day that is more vulnerable to declines. The holiday closing for Wednesday and Thursday may coincide with more negativity in global markets.

Friday could be an interesting day since it will feature a one bullish and one bearish aspect. The bullish Sun-Jupiter aspect could well end up cancelling out the negativity from the Mars-Rahu aspect, although if Indian markets are playing catch up, the downside risks should not be ignored.

Crude oil rose last week. Crude ended the week above $85. As expected, most of the gains occurred in the beginning of the week around the Sun-Neptune aspect. However, my forecast for a late-week decline did not come to pass as bulls retained control. This week looks like a mixed bag as Monday’s Venus-Jupiter aspect may be offset by Wednesday’s Mercury-Rahu aspect.

The big story last week was gold as it plunged 10% from its lofty high of $1900 midweek before recovering somewhat by Friday. Gold futures closed down 3% for the week just under $1800.

While I had expected some volatility around the Mars-Saturn aspect, I greatly underestimated the effect of this combination.

I thought the ongoing Sun-Venus conjunction would be enough to offset other influences but this was not the case.

Gold may well have ended its parabolic rally here as Jupiter’s bullish influence is nearing an end.

More rebound is possible this week, however, both Venus and the Sun form aspects with Jupiter.

The writer is a neo-Vedicastrologer specialising in predictive astrology. He runs the website www.modernvedicastrology.com