November Slump Nearly Completely Gone, As The Last Two Economic Weak Spots Show Signs Of Improving


Bad news for the bears: The November slump is now almost completely gone. The S&P 500 is within less than 1% of its yearly high, which is really remarkable considering how much it has withstood in terms of negative headlines.

But the fact remains that one set of headlines we haven’t seen are those pertaining to a weakening or slowing economy. The macro data around the world (even in Europe, with the exception of the periphery) has remained solid.

And now we’re getting something interesting: Pending home sales were surprisingly this morning, and tax receipts continue to improve at the state and local level.

The homebuilder index is up 3%.

(Also strong today? Retail, thanks to decent sales data from some big names, like Target)

Pretty much everyone agrees that the two glaring weak spots for the US economy are housing and state finances. If these turn around, and manufacturing keeps chugging along, then those are the final pieces dropping into place for the recovery.

Granted, the trend is nascent, but trends have to start way.

Now click here for 12 reasons bulls should still be terrified >

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