Research Excerpts

On Election Day, US Financial Asset Prices At A Major Crossroads

Posted on: Tuesday, November 6th, 2012

The following (green text) is an excerpt from our November 6th Commentary entitled On Election Day, US Financial Asset Prices At A Major Crossroads.

Asbury Research subscribers can view the entire report by logging into our Research Center.

Commentaries, one of 8 different reports that Asbury Research produces for subscribers at various intervals throughout the month, are periodic strategic reports that provide a comprehensive analysis of specific areas of the US financial landscape, for the purpose of identifying emerging intermediate term price trends and the new investment opportunities that they may provide.


Excerpt from our November 6th Commentary:
On Election Day, US Financial Asset Prices At A Major Crossroads

Whether it’s by coincidence or design, four major areas of the US economy — US stocks, US interest rates, the US Dollar, and commodity prices — are all uncharacteristically positioned at major decision / inflection points at the same time, on Election Day in the US.

How each of them react to these major price levels, which could be triggered at least in part by tonight’s winner, will be seen as a key indication of what to expect in terms of US financial market direction at least through the end of the year, and potentially into 2013.

US Stocks

 Chart 1 below plots the Dow Jones Industrial Average (DJIA) since July 2011 and points out that it is currently positioned right on top of major underlying support at 13,088 to 12,990, which represents the October 2011 major uptrend line (green) and the 200-day moving average (major trend proxy, orange).

Chart 1

Not shown is that the NASDAQ 100 (NDX), NASDAQ Composite (COMP), and Russell 2000 (RUT) Indexes are also coincidentally positioned right on top their corresponding major support levels.

More detail on these indexes and major support levels are available in Monday’s (November 5th) Keys To This Week (access requires subscription).

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