Research Excerpts

S&P 500 Meets Our 1163 Initial Downside Target

Posted on: Sunday, November 27th, 2011

The following (green highlights) in an excerpt from our November 21st Keys To This Week report. 

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


Keys To This Week
The US Stock Market
November 21st, 2011

Key # 1 of 10: Chart Patterns: Bearish Patterns In US Index.  NEAR TERM BEARISHLast week a number of US stock indexes confirmed breakdowns from bearish chart patterns (per our November 17th Asbury Alert entitled Changes In Our Near Term Market Bias), indicating that at least a near term peak is in place in the US stock market at its recent highs.  These indexes, patterns and initial downside targets are listed below.

    • S&P 500 (SPX):  A triangle pattern (red highlights in Chart 1) targets a -4% decline to 1163 that will remain valid as long as the lower boundary of the pattern at 1245 loosely contains on the upside as overhead resistance.

Chart 1

continued…


Our 1163 initial downside target in the S&P 500 was met on Wednesday November 23rd for a 53 point, 4.4% gain on short positions in just 4 market sessions.

Now , the bigger, more important question is whether last week’s sharp decline is just a correction in an emerging bullish trend, or the beginning of a much deeper market decline.  We discuss what we are expecting in detail, and why, in this week’s Keys To This Week report — which will be distributed to clients on Monday morning.

Asbury Research subscribers can view our entire November 17th and 21st reports by logging into the Research Center of our website at www,asburyresearch.com.

Interested investors can learn more about our investment research including sample reports, client testimonials, our 2010 and YTD 2011 market calls, and John Kosar’s recent appearances in the media right here on our website.