WAKE UP! One Of The Best Indicators For The Stock Market Is Looking Bad

We’ve pointed out for a long time that initial claims is one of the best concurrent stock market indicators.

The chart of the inverse of initial claims vs. the stock market is one of the most powerful pieces of evidence that the market’s movements have been fundamentals driven, rather than liquidity driven.

chart

Anyway, today initial jobless claims spiked to their worst level since January at 380,000.

This is problematic for for the market, and it undercuts one of the chief bullish arguments, that declining initial claims was strong evidence that the job market wasn’t running out of steam.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.