Conventional wisdom states that the economy should predict the stock market, and that a weak economy should translate into a weak stock market.
In reality, the opposite is most often true, as the stock market is considered to be a discounting mechanism, and trades on future expectations, not past or current news. The last few months have been a stellar example, as markets have continued higher in the face of historically weak economic news.
VIEW THE YOUTUBE VIDEO HERE: https://youtu.be/mQwnPN3OVeg
The S&P 500 index, $SPX, is one of the components used to determine the Conference Board’s Leading Economic Index, LEI. Below are 5 charts, of the S&P 500 and 4 other economically sensitive industries, to get a snapshot view of the current stock market expectations of the economy going forward.
Like all charts and trends, they can reverse at any time, but the message of the market now is clearly different than the message has been from those who simply follow the news or economic indicators.
The trend for now continues to be up, with a series of higher highs and higher lows, with key moving averages having been reclaimed, and turning up.
If the trend starts to break down, price will start to break below recent support levels and below key MAs. If that happens, we will reevaluate the trend at that time.
DOW JONES US HOME CONSTRUCTION INDEX
DOW JONES US RAILROAD INDEX
PHILADELPHIA SEMICONDUCTOR INDEX
DOW JONES US TRUCKING INDEX
We started buying stocks on March 18, taking our signals from the markets themselves, and not the news or economic reports, this video explains why: https://bluechipdaily.com/we-started-buying-stocks-on-march-18-heres-why-blog/