Research Excerpts

Exxon Mobil (XOM) Led The August Broad Market Decline

Posted on: Wednesday, August 21st, 2013

The following (green highlights) is an excerpt from our July 29th Keys To This Week report.

Keys To This Week, one of 8 different reports that we produce for subscribers throughout the month, is a detailed weekly outline of key market factors and corresponding charts pertaining to the US stock market and market sectors, US interest rates, the US Dollar, and economically-influential commodities that are most likely to influence US financial market direction during the upcoming week.

Click Here to view a sample copy.


Excerpt From: Keys To This Week
Asset Class: US Equities
Topic: Large Cap Stocks
Date: Monday, July 29th 2013

Key #1 (of 12) for the US Stock Market: Exxon Mobil (XOM) Testing Major Resistance.

Chart 1 below shows that XOM is currently testing major overhead resistance at its $95.64 per share May 2008 all-time high.

Chart 1

Chart 1

Considering that Exxon Mobil is the largest US-traded stock according to market cap, and has been positively correlated to the bellwether S&P 500 at various intervals over the past 20 years, how this stock reacts to this key level will be seen as an indication of upcoming near to intermediate term direction in the US broad market.

continued…


Exxon Mobil has already declined by 9.3% from its $95.49 July 23rd high, and by 7.8% since our report was distributed to subscribers on July 29th.  The S&P 500 peaked 4 days after our report, on August 2nd, and has subsequently declined by 3.9% into today’s lows.

Heading into today’s release of the Minutes of the July 31st Federal Open Market Committee, XOM is positioned right on top of a major support level and a major inflection point that we will be watching closely for the rest of this week.

Asbury Research subscribers can view our entire July 29th report by visiting our Research Center.