The US Stock Market: At A Major Inflection Point
In our previous February 5th update, we pointed out that the benchmark S&P 500 (SPX) was testing its 200-day moving average, a widely-watched major trend proxy, as overhead resistance. You may recall that the sharp 4th Quarter decline in SPX didn’t really started to accelerate until the 200-day MA was broken to the downside, on October 11th, and then proceeded to collapse by an additional 381 points or 14% into the late December lows.
About two weeks later, on January 9th, our Asbury 6 key internal market metrics all turned back to positive (bullish) and one day later, on January 10th, our Correction Protection Model CPM) switched back to a Risk On mode. The S&P 500 has subsequently risen by 228 points or 9% but is now testing formidable overhead resistance at 2800 to 2817. This level can be seen in the chart below, and is also displayed and discussed in our latest tactical video. See the link to it near the bottom of this page.
We view the SPX 2800 to 2817 level as an important intermediate term inflection point, from which the US broad market index is likely to either extend its 2019 advance to retest the 2941 September 20188 all-time highs, or begin an overdue — and potentially sharp — downside correction.
The video, available below, shows how we have actually managed investor assets amid these recent market conditions for our Asbury Research Management clients.
Asbury Investment Management (AIM): Our Latest Video
Click Here for our 02/05/2019 Video Review, which explains how we have recently utilized Asbury Research’s market analysis and investment ideas to professionally manage client portfolios.
We offer a unique approach to investment management that is dynamic and based on the current condition and risk/reward profile of the financial markets, rather than on whatever your pre-set investment allocation might be. Our portfolio team monitors the current condition of global financial markets every day, as it pertains to your account, and alters our tactical and strategic investment approach as market conditions change.
We hope you will find these bi-weekly commentaries and accompanying videos informative, educational, and useful. Feel feel to contact us with questions about the markets, and for further information about our unique approach.
For further information about Asbury Research Management, please email contact@asburyinvest.com or call 1-844-4-ASBURY (1-844-427-2879).