Now that the all important waxing square of Uranus -Pluto is so near, on June 24, 2012, let us look at what happened in the stock markets last time such a square formation occurred.We had a similar formation during 1931 to 34, when the US Economy went through Great Depression.Only difference was that it was a Waning Square. That is in 1931, Uranus was in Aries. Pluto was in Cancer. ( Saturn was in Capricorn-All three are in cardinal signs.)Uranus kept on moving towards Pluto and finally on October 09, 1965,they become conjunct in 17 degree Virgo.A waning square generally leads to complete change of ways of the world.It happens through massive destruction..We all know from history what the world went through in those tumultuous years, including the Second World War and the Atom Bomb.
Now Uranus in Aries is moving away from Pluto in Capricorn.( Saturn is in Libra, again all three are in cardinal signs.) and by 16th August 2047 they will once again be in opposition, with Pluto in Pisces,Uranus in Virgo and Saturn in Sagittarius.Here is the 1931-32 chart of Dow Jones:( coutesy-www.technicalanalysisbook.com)
On June 12, 1931, Uranus and Pluto came within one degree of their square formation.Dow formed an intermediate low at 119.81 and recovered 30.82% to 156.74.Time taken was three to four weeks.By the time Uranus and Pluto became exactly square, Dow was in a sustained downtrend and formed an ultimate low between the first square of April 20, 1932 and second square of September 02, 1932.
How was the waxing square between these two slow moving power houses in the past? There is only one instance in the past of a waxing square between Uranus and Pluto.This was in 1876-1877.This was an extremely stressful period for USA, Europe and rest of the world. Railroads and Banks had collapsed and the World was in what is now referred as Long Depression.The Kondratieff cycle of 54 years also had a trough here.
Let us fast forward to June 2012:
Uranus and Pluto came to within one degree, on June 04th.Markets tumbled to a low on that exact date.Since then Nifty is on a recovery mode.The first Square formation date is on June 24, 2012.And the next square date is September 19 2012.Another remarkable fact is the speed in which both these planets are coming together.While in 1931, Uranus and Pluto coming into one degree of a square and then becoming exactly exact, took nearly a year. Now it is in just 20 days! ( June 04th to 24th). So there could be significant and fast paced actions in the coming weeks and months.
Interestingly Saturn is becoming direct in Libra, exactly one day after Uranus-Pluto Square-on June 25,2012.Time band for this effect is 2 to 7 trading days: June 27th to July 04th, 2012.Typically it may be a reversal from a market top.
Venus is becoming direct on June 28, 2012.Manifestation time band is 4 to 11 days.Fourth day happens to be coinciding day with Saturn effect day-July 4th. Even though Saturn direct leads to troughs and recovery from troughs,markets have reversed from tops as well.Could that be because of Venus occultation?
Also Venus is in Gemini and so duality may be experienced. Which means there is a chance that the markets may reverse yet again upwards on July 13, 2012.
So a roller coaster ride seem to be on the cards in the next two weeks