Research Excerpts

The World Is Becoming A Flatter Place:
Watch Global Stock Markets

Posted on: Monday, August 1st, 2011

The following (green highlights) is a chart and a brief excerpt from our Monday August 1st Keys To This Week report.


excerpted from Keys To This Week
The US Stock Market
August 1, 2011

Intermarket Analysis: Paris CAC-40 Index.  NEAR TO INTERMEDIATE TERM BEARISH.  Chart 1 displays a daily bar chart of the Paris CAC-40 Index during the past year and highlights the mid July breakdown from 5 months of sideways congestion, the late July retest of the 200-day moving average as overhead resistance (orange line, a major trend proxy), and last week’s decline to fresh lows.  This series of events confirms a major bearish trend change in the index and targets an initial 10-% decline to 3300. 

Chart 1

Considering the tight and stable 89% positive correlation between the CAC-40 and the S&P 500 since 2000, this breakdown suggests the likelihood of a similar and coincident decline in the US market.

continued…


Asbury Research subscribers can view the entire report by logging to our Research Center (just click the button at the upper right corner of the screen and entering your Username and Password). It includes 10 charts and 32 bullet-pointed investment ideas pertaining to the US stock market and market sectors, US interest rates, and the US Dollar, and a summary on what they mean for the upcoming direction of the broader US economy for Q3/Q4 2011.

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