The following (green highlights below) is one of 27 charts included in our US Financial Market Chart Book for November 2011, which was distributed to Asbury Research subscribers earlier today.
US Financial Chart Book, one of 8 different reports that we produce for clients throughout the month, is a collection of key charts, data and intermarket analysis that convey our best investment ideas for November in the US stock market and sectors, US interest rates, the US Dollar, and economically influential commodities like copper and crude oil.
Asbury Research’s US Financial Market Chart Book
November 14th, 2011
US Interest Rates
This chart points out the steadily-tightening positive correlation between the S&P 500 and the yield of the US 10-Year Treasury Note since September 2010. This relationship is due to the US stock market’s tendency to look to the forward-looking bond market for direction during periods of economic uncertainty or weakness.
This chart suggests that, as go benchmark US interest rates through the end of 2011, so should go the US stock market.
Asbury Research subscribers can view the entire report and the accompanying video by logging into the Research Center of our website at www,asburyresearch.com.