FINANCIAL ICEBERG
Always consider hidden risks
 TECHNICALS
SP500 And Purchasing Manager Index Out in Sync  ?
​Feb 4  ( From FRED  )
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The Situation

​Since the beginning of the financial crisis, the Federal Reserve have
​been obliged to inject tons of liquidity into the system.


​​Financial assets like the SP500 had a very good performance indeed making new highs in January 2014.​ The Purchasing Manager Indexes ( PMI ) do not confirm in terms of valuation of the SP500 but
​the Mighty SP500 is still well in advance vs PMI Indexes.

US PMI - Definition

​​An indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.
SP500 Index Change from a year ago % ( Blue / Left Scale )
ISM Manufacturing Index  %( Red / Right Scale )​
​ISM Non-Manufacturing Index  %( Green / Right Scale )​
SP500 And Purchasing Manager Index Out of Sync

The charts below shows the weakening in terms of economic activity according to the PMI Indexes and ​​the Mighty SP500. Observe the similarities between 2006-2007 and 2008 and now.

Details From The Institute for Supply Management :​ ISM News on the Net
​​
SP500 Index Change from a year ago % ( Blue / Left Scale )
ISM Manufacturing Employment Index % ( Red / Right Scale )​
​ISM Non-Manufacturing Employment Index % ( Green / Right Scale )​
And the same pattern with the sub index on Employment...
SP500 And Purchasing Manager Index Out in Sync ?  $MACRO, $STUDY, $SPY, $SPX, $ES_F