One Of Our Favorite Indicators Shows The Market Might Be Nearing A Turning Point

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		Tech Science Entertainment Wall Street Markets Strategy Sports Lifestyle Politics Law International Video Latest Tuesday, July 3, 2012 One Of Our Favorite Indicators Shows The Market Might Be Nearing A Turning Point We seem to come back to this chart every few months, and this time it's showing that investor expectations are getting absolutely crushed. Citigroup indices of economic surprise from around the world are all strongly negative, all near one or more year lows. That means that analyst expectations are way above how the data is coming in, and analysts only get surprised for so long before they adjust their expectations downwards. While these indices have been pretty accurate in the last few years, their reliability going back ten years or so is less than stellar. In particular, correlations of the S&P 500 and the CESI indices are not always compelling. That said, other charts suggest that measures of market performance that take into account multiple asset classes jibe closely with economic surprise. Either way, so long as investor expectations are getting creamed, we should be looking for predictions to be adjusted downwards. Read » Also On Money Game Today: Deutsche Bank's Joe LaVorgna Can't Wait For The August Jobs Report What Everybody Needs To Know About Yesterday's Disastrous Manufacturing Report MARKETS GO HIGHER: Here's What You Need To Know Incredible Photos Of A Massive Chinese-Built Ghost Town In The Middle Of Angola Advertisement CHART OF THE DAY: The Last Time New Orders Collapsed Like This, It Was Right After 9-11 CHART OF THE DAY: The Most Important Chart In Europe Just Had Its Best Day Since 1993 CHART OF THE DAY: Major Hospital Stock Surges Like Crazy After Supreme Court Ruling Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: ipat39@gmail.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Money Game RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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