Seeking Alpha
All posts from Seeking Alpha
Seeking Alpha in Seeking Alpha - Read, Decide, Invest.,

SPY 1.8% Below Record High While ECRI's WLI Growth Rate Rises To 6-Week High

The most recent estimates for GDP said the economy grew at a rate of 5.0% in Q3 of 2014 then fell nearly in half to a 2.6% rate in Q4 of 2014. While the sudden drop in Q4 GDP may have surprised many analysts and the stock markets, the decline was clearly telegraphed by ECRI's WLI growth rate.

Chart 4 in my last article relating SPY to ECRI's Weekly Leading Index, WLI, titled "SPY Sets Another Record High While ECRI's WLI Growth Fell To A 2.3-Year Low" showed the growth rate for WLI falling dramatically to a 2.3 year low. Chart 4 below shows the most recent WLI data is even lower today but still well above prior lows of the economic recovery that began in 2009.

On Friday February 6, 2015, for the S&P500 index at 2,055.47 was only 1.8% below its record high of 2093.55. ECRI's… Read More …