Our Favorite Stock Market Indicator Chart Is Showing Some Signs Of Cracking!!!

Here's a chart we've run numerous times over the past couple of years.

It shows the S&P 500 (blue) vs. initial jobless claims (in red, flipped upside down, so that the line goes up, when claims improve).



The two lines don't move perfectly together, but they generally trend together because initial claims is a pretty good real-time measure of the economy, and the stock market is driven in large part by economic fundamentals.

Anyway, lately the stock market has dropped pretty hard (two a three-month low actually), while initial claims remain near their best levels post-crisis.

The two lines might close again pretty quickly, but it's worth noting the last time there was a severe break between the two lines was last summer, around the debt ceiling fight, a scenario which the current fiscal cliff debate harkens back to. Then the market freaked out, but mostly the economy kept on rolling.

That being said, the US economy is not bulletproof. Although housing and consumer confidence are major tailwinds, there's been a sharp dropoff in Capital Expenditure growth and so forth. Anyway, this is one to keep an eye on.


Read more: [link to www.businessinsider.com]

Are you serious? You've lost all credibility.

Dunno about charts

Seems when "they" want it either pumped or dumped, it happens

Seems it was being held up til the election.

Whether it dumps now or not, dunno. Call your uncle.

he only quoted, and you know it, shilly burrito.

pin request for my portuguese comrade

He is posting info from an online source. His credibility has nothing to do with the source. You just engaged in an ad hominem argument. You are illogical.

what? TimeWave Zero?

wtf,op?

I thought glp's favourite indicator was the baltic dry index

you're a fucking traitor!

Holy positive correlation Batman!

That flipped S&P500 chart really matches the Initial Jobless Claims chart!

Hmmm...I wonder what happens to jobs when the market epically crashes. (as we all know it will)

Predicting which way the market will swing next is a game for amateurs. That is guessing the future. That is gambling.

Why do you think some hedge fund managers are among the richest men in the world at relatively young ages? Because they bet both ways (hedge) simultaneously.

I have heard this also.

jobless claims are rising now!



[link to offthefbwall.wordpress.com]

Buisness Insider is jewish disinformation.