Research Excerpts

Last Week’s Jump In Oil Prices
Helped To Buoy US Stocks

Posted on: Sunday, January 8th, 2012

The following (green highlights) is a brief excerpt from our January 3rd Keys To This Week report (access requires subscription).

Keys To This Week, published on the first business day of the week, is one of 8 different reports that Asbury Research produces for subscribers at various intervals throughout the month.


Excerpt from Keys To This Week
January 3rd, 2011
The US Stock Market

Key# 7 of 11> Intermarket Analysis: Crude Oil Prices. NEAR TO INTERMEDIATE TERM BULLISH.  In our December 16th report entitled 2 Key Intermarket Relationships To Watch Into Early 2012 we pointed out a bearish triangle pattern that initially targeted a decline to $90.00 per barrel.  However, this pattern was “broken” by the sharp rally back to $102.00 on December 27th and 28th.  This broken pattern clears the way for more strength and at least a test of $105.00 which, if reached, would definitively turn the major trend in oil prices positive (bullish).  Considering the tight and stable positive correlation between crude oil prices and the S&P 500 since October 2007, this recent bullish reversal in oil prices is seen as being indirectly bullish for the US stock market.


Crude oil prices spiked higher by $3.91 per barrel or +4% last week, while the S&P 500 coincidentally rose by 27 points or +2%

Asbury Research subscribers can view the entire report by clicking here.

Interested investors can learn more about our investment research, including sample reports and client testimonials, right here on our website, or can get subscription information by calling 224-569-4112.