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%
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