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Leading Economic Index

Please click here for a chart of Nasdaq 100 ETF (QQQ).

Note the following:

  • The day started out with the momo crowd buying stocks.
  • The chart shows when the leading economic index was released. It came at -0.8% vs. -0.5% consensus.
    • This is an important leading indicator.
    • This indicator has now fallen four months in a row.
    • The economic indicator is forecasting further weakness ahead.
  • Interest rates fell and bonds rose on the weak leading economic index.
  • The chart shows there was initially selling after the release of the leading economic index.