Economic Surprise Index Plunges To Second Lowest Level In History

from King World News

With continued uncertainty in global markets, take a look at this troubling chart.

Jason Goepfert from SentimenTrader: “The last time that stocks held up while economic reports failed to beat expectations, stocks sold off hard (see chart below).”

[…] Those reports have not been consistently positive, at least in terms of exceeding economists’ forecasts. The Citigroup Economic Surprise Index has been below 0 almost every day in 2016, its longest period (by far) below zero, or nearly so. Earlier this month, the Bloomberg Economic Surprise Index dropped to its 2nd-lowest reading dating back to its inception in 2000, exceeded only by January/February 2009. That has raised concerns that the stock rally is running on fumes.”

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