Reading the Tea Leaves on Wall Street

Lest you think I’m on a Rocky Mountain High, I’ve decided to move my focus from the Democratic National Convention in Denver over to the corner of Broad and Wall streets in Lower Manhattan. Once upon a time a buttonwood tree grew on Broad Street and a group of brokers vowed to trade exclusively with each other. The New York Stock Exchange is the modern-day embodiment of that pact.

Now that the Sun has moved into Virgo, the market isn’t quite as ebullient as it was late last week, when the Sun was in late Leo making a powerful trine to Pluto.

The Dow Jones Industrial Average closed down 240 points today, to 11,386.25. As Ray Merriman points out in his column this week, there’s still some upside potential next month because of trines between Jupiter and planets in Virgo, not to mention the Jupiter station on Sept. 7. That’s the astrological outlook.

From a technical standpoint, a key support level is 10,739, set back in July 2006. Here’s the Yahoo five-year chart for the Dow Jones.

Those who follow stock charts, as opposed to astrological charts, will tell you that if the Dow breaks through that 10,739 threshold, look out below. I’d like to point out here that any investment advice offered on this blog is for entertainment purposes only.

If you want to be really entertained by economic writing, Ellen Simon at the AP has got a funny little story about Wall Street learning its ABCs.

I wrote something myself about the possibility of a W-shaped recession. You can read it here.