Here’s The Market’s Next Upside Target
Asbury Research’s Stock Market Update & Asbury Investment Management Video is a free report that we use to keep in contact with existing clients, and also those who have previously asked for information about either Asbury Research or Asbury Investment Management (AIM). Feel free to contact us for additional information about our services for both professional and private investors.
In our previous Sunday December 5th Stock Market Update & Asbury Investment Management Video, we said:
“The S&P 500 finished last week (ending Friday Dec 5th) right on top of primary Tactical support at 4545. A significant and sustained decline below this support next week would confirm that a real corrective decline has begun, rather than just another one of the numerous 5%-ish minor pullbacks that have occurred since the beginning of the year.”
The chart below, an updated version of the one from that report, shows that the Dec 3rd test of support that we referred to actually held as the index aggressively rebounded during the following week. The chart also shows that another successful test of this support area took place on Dec 20th. The rapid back-and-forth trading activity that created both of those successful tests of support was indicative of investor indecision as shown by the red highlights.
The green highlights point out that SPX rose out of this indecision area on Dec 27th, which suggests that the US broad market index’s larger 2021 advance has resumed and targets an additional 3.3% rise to 4950 which will remain valid as long as the upper boundary of the indecision area at 4723 now contains on the downside.
Meanwhile, the table below shows that the Asbury 6, our own daily risk management model, is currently Positive or bullish. Our model actually shifted back to a Positive status on Dec 22nd, two days after the second successful test of underlying support on Dec 20th. The S&P 500 has risen by an additional 5.4% since then.
As long as the “A6” remains in a Positive mode, to indicate the market is internally healthy, the 4950 upside target shown in Chart 1 above is likely to be met.
Editor’s Note: The Asbury 6 is our own quantitative risk management tool which is updated daily in our Research Center. The “A6” is a combination of six diverse market metrics that we grouped together to look beyond the day-to-day, up-and-down noise of the stock market to determine its actual health — in much the same way that a doctor first checks the patient’s vital signs during an office visit. Four or more metrics in one direction, either Positive (green) or Negative (red), indicate a Tactical market 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.
Our latest video below shows how we have navigated these recent market conditions for client portfolios in real-time.
Asbury Investment Management (AIM): Our Latest Video
Asbury Research Ideas, Expertly Managed
Here is our December 30th Video Review, which explains how we have recently utilized Asbury Research’s market analysis and investment ideas to professionally manage client portfolios.
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This communication is for informational purposes only. It is not intended as investment advice, or as an offer or solicitation for the purchase or sale of any financial asset. No inferences may be made and no guarantees of profitability are being stated by Asbury Research LLC. The risk of loss trading in financial assets can be substantial. Therefore, you should carefully consider whether such trading is suitable for you in light of your financial condition.