The following is a brief stock market overview from Asbury Research, and below it a link to a video from Asbury Investment Management (AIM) which explains how we utilized Asbury Research investment ideas and strategies to professionally manage client portfolios. Questions, comments welcome. Click Here to contact us.
Asbury Research: US Stock Market Update, June 29th 2018
The US stock market’s larger 2016 major uptrend is still intact. However, there was a failed attempt to re-engage that uptrend in mid-March, and there could be another failed attempt brewing now due to technical breakdowns in positively correlated French and Chinese stock indices, and recent weakness here in the states in the Dow Transports (DJTA) and NYSE Composite (NYSE).
Meanwhile, many of our key near term market internals have turned negative including contracting investor asset flows, widening corporate bond spreads, and recent relative underperformance by US equity prices versus junk bond prices. These factors have at least temporarily put us in a defensive mode in which we are significantly limiting our investment in individual stocks and instead focusing on index ETFs, the latter where we can better control our risk due to lessened volatility.
When price action and market internals indicate the potential for upcoming market weakness, as they do now, it is particularly important to know where the key levels are in major benchmark indexes so investors can distinguish opportunity from risk. The chart below plots the current key levels in the S&P 500, both above and below the market. A sustained decline below major support at the 200-day MA, currently at 2668, would corroborate the internal weakness we have been seeing over the past week and would warn of a deeper decline.
More charts, and much more detailed and specific coverage of individual stocks, ETFs, and US interest rates, plus access to our Correction Protection Model (CPM) are available with an Asbury Research subscription. Contact Us for sample reports and pricing.
Asbury Investment Management (AIM): Our Latest Video
Click Here for our 06/29/2018 Video Review, which explains how we used our latest research to better manage client portfolios.
For further information about Asbury Research Management,
please email contact@asburyinvest.com or call 1-844-4-ASBURY (1-844-427 2879).