The US Stock Market: Coiling For The Next 4-5% Advance
In our previous February 26th update, we pointed out that the S&P 500 (SPX) had risen by 228 points or 9% since January 9th-10th, when our Asbury 6 key internal market metrics and Correction Protection Model CPM) switched back to a Risk On mode, but was testing formidable overhead resistance at 2800 to 2817.
A little more than two weeks later, the lime green highlights on the chart below show that SPX first declined to test primary support at 2752 to 2739 on March 8th, then quickly rebounded to retest 2800 to 2817 resistance.
This quick rebound from support probably represents an aggressive “buy the dip” mentality by what we believe is a large contingent of investors that missed the initial sharp rally off the late December lows, and promised themselves to buy the next minor decline into support — which is precisely what the decline into SPX 2752 to 2739 was. Meanwhile, our Asbury 6 internal market metrics are currently split right down the middle between positive and negative signals. which tells us that investors are collectively uncertain about what the market’s next direction will be.
Once this is resolved, we believe it will lead into at least the next 4% to 5% directional move in the US broad market. Stay tuned.
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
Asbury Research Ideas, Expertly Managed
Click Here for our 03/13/2019 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.
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