Conclusion, Investment Implications, Strategy

Table 1 below shows that, as of the close on October 27th, five of the Asbury 6 key internal market metrics have moved to Negative, from Positive on October 5th.

Table 1

Editor’s Note: The recent, atypical volatility in the Asbury 6 indicates that six unrelated market metrics are at an inflection point / decision point between Positive and Negative readings.  This indicates investor indecision and suggests the US stock market is at a Tactical inflection point, from which its next significant directional move — up or down — is likely to begin.

The chart below highlights the Asbury 6’s signals over the past 12 months

Chart 1

Click the table to make it larger.

Four or more metrics in one direction, either Positive (green) or Negative (red), indicate a tactical bias.  The dates in each cell indicate when each individual constituent of the A6 turned either positive (green) or negative (red).  When all Asbury 6 are positive, market internals are the most conducive to adding risk to portfolios. Each negative reading adds an additional element of risk to participating in current or new investment ideas.