Ever few weeks we like to check in on this one because it’s just so nice.
The S&P 500 (red) and initial claims flipped over (blue) have moved together very nicely for over 5 years now.
This is the nicest signal we have that the market continues to operate on the fundamentals of the economy, and most of everything else we have is noise.
Of late, the market has been rallying and initial claims have moved in the right direction. That’s no surprise.