This is the first post of 3 on the analysis of US economy and stock market. The left graph shows the SP500 and its respective long-term perspective and current outlook for the net positions of traders in future markets. The current high net positive position of Non-Commercial investors indicate a continuing downtrend ahead. Non-commercials are trend followers and are usually caught when the market trend reverses. This occurs when their futures positions are in peak levels, as shown in the current scenario. This same outlook is shown by the high relative spread between commercials and non-commercials net positions of the index, another indicative of the bearish outlook. On the right graph we can see some divergences between SP500 and the price of cooper (industry production proxy indicator). The other graph shows an interesting mood proxy indicator and its divergence with SP500. This indicator is the WWE stock, a professional wrestling entertainment company. When the society mood is positive, interest in wrestling increases and peaks in this kind of entertainment matches with peaks in the stock market. However, since April 2019 a big divergence is shown between WWE and SP500. FOLLOW SKYLINEPRO TO GET UPDATES.
That WWE correlation is really interesting; without seeing the data I would have guessed the correlation to be reversed.
TheMarketDog2
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Thanks a lot.
very educative
DaddySawbucks
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Fascinating! WWE indicator... reminds me of the old Superbowl Sign, AFC v NFC, Bears v Bulls lol; ty for post!
Imdmagic1
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NM...
farmerisland
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@SkylinePro thanks for the post; very interesting! I've never considered WWE to be such an indicator, but totally makes sense... By your wave analysis, where do you view us heading for a potential peak point before we move sharply lower? I think we're very close and June could get nasty.
SkylinePro
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@farmerisland, thanks your comment. I believe we are very close to the reversal...a potential target would be 3,024, but not more than 3,238. Yes, June should get nasty..