Prepared by Norman Winski

The June Astro-Trend promised you large short-term swings for the stock market and you got it. So far, June 20 has been the high and this was one of two time windows highlighted in last month's letter.

Currently, the stock market is very overbought, reaching near-record historical volatility swing parameters. Contrasting this is the fact that the planetary cycles look very bullish for most of July, showing major- cycle culmination tops due the latter part of the month. The ideal scenario calls for a quick and sharp shake out to the downside during the first week of July and then a final blow off top culminating either July 21 or July 28-31.

The cycle analysis for July shows little agreement between the Fibonacci cycles and the planetary index. The one point of agreement is for steep trend between July 20-28 with an important change in trend on the latter date.

If correct about an upside blow off, the harmonic price resistance levels to watch on the SPX are 954, 975, and 990. on the downside, a minimum correction, measured from the swing high, of at least 7% is very much overdue.

One final note, the July 3-7 energy point is the one single largest energy point I have ever recorded. Even adjusting for the long July 4 weekend would put this near the top of the list. The July 7 opening looms large as a good possibility for trading opportunity in the stock market.

Key Dates-6/30, *7/7*, 7/8, 7/11, 7/14-15, 7/17, 7/21, 7/29, 8/1.

5/30 close SPX 848.28. 6/27 close SPX 887.30.

We correctly forecasted the major April high for the U.S. Dollar. Since then, the dollar index has experienced a downward correction of up to 400 points. However, during the latter part of May and all of June, the dollar index has basically gone sideways.

The outlook for July is very interesting, as there are three major cycle culminations between July 20 and August 3. Any one of these on its own merit could be expected to produce a major high. The specter of having these three cycles culminate within a two-week span heralds a market change in trend of potentially historical proportions. Interestingly, the last of these three aspects occurs on August 3. So far, the high of the year occurred on April 28, at the 97 area. 97 days added to April 28 is August 3.

In conclusion, watch for a major change in trend for the U.S. in late July or early August. This will probably also have important ramifications for the other financial markets. This indicated trend change for the U.S. Dollar is also corroborated by the fact that the Japanese Yen is showing some powerful energy points for July. So, stay tuned.

Key Dates-6/30, *7/7-8*, 7/14-15, 7/17, 7/21, 7/23, 8/1-3.

5/30 close September U.S. Dollar 94.47. 6/27 close September U.S. Dollar 95.31.

The yen is now consolidating following the sharp 10-15% rally from the 4/28 low at the 80-cent level. The recent high was just below 92 cents. One more new high and then a good pullback would setup an excellent buying opportunity. Let's keep one eye on the yen as the major dollar situation, described above, unfolds. Cross reference the yen key dates with the U.S. $ key dates to corroborate and increase the probabilities for a change in trend.

Key Dates-7/7, 7/21, 7/29, 7/31.

5/30 close September Japanese Yen 87.36. 6/27 close September Japanese Yen 88.27.

September T-bonds recently met our 112-18 overbot sell target zone, which re we recommended a short sale to our fax advisory clients. Now the key to the T-bond picture is whether our forecast for Fed tightening next week will be realized. The ideal scenario would be a quick shake out to down side which would relieve the current overbot condition of the market. Then, given the very positive planetary cycles due for the U.S. during most of July, the T-bonds would be poised for another leg up to possibly the 116-117 area. We won't know the upside target until the correction has finished, possibly in the next few days.

Key Dates-6/30, *7/7*, 7/15, 7/16, 7/21, 7/23, 7/29, 8/1 AC.

5/30 close September T-bonds 109-21. 6/27 close September T-bonds 111-20.

The grains have been going down down down and wheat has been no exception. However, our planetary cycles show that a low in wheat may be close at hand, if not already here. The near-term key is that December wheat needs to hold the 3.49 level and then mount a rally into the July 4th new moon. This rally must be large enough to allow for a post July 4th pullback and successful test of the recent lows. This low is due July 18-21.

Key Dates-7/7, 7/15, 7/18, 7/29, 8/1 AC.

5/30 close December wheat 3.785. 6/27 close December wheat 3.490.

Oat prices have been declining with the rest of the grain complex, having made their 1997 high on 3/21 (Vernal Equinox) at the 1.76 area, basis Sept. Currently, the chart pattern is not looking very constructive and at minimum should require several more weeks to build a good base for any significant rally. On the other hand, there is good support just a little lower starting at the $1.35 area. So, if oats can extend it's decline to 1.35 or lower at a key date, one could consider a strategy of buying for a quick bounce.

Key Dates-7/7, 7/29, 8/1 AC.

5/30 close September oats 1.570. 6/27 close September oats 1.470.

For the previous 6 months, copper has had one of the steadiest slow rallies I have ever seen Basis September. Copper has been rising about 5 cents per month with very little in the way of significant corrections. The largest correction during this period began when the Sept. contract made its recent high on June 17 at the 1.20 level, a level we have had targeted as major resistance for many months. The chart looks as though it is starting to rollover and lose momentum. I recommend selling short HGU on a retest of the 1.20 area near a key date.

Key Dates-6/30, 7/7, 7/29, 8/1-8/1 AC.

5/30 close September copper 1.150. 6/27 close September copper 1.1185.

June 30, 1997Norman Winski

Astro-Trends

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Consensus National Futures and Financial On Line Index
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