400K is a crucial level below which economists would think less possibility of recession. So far the level is high around 470K and the four week moving average is tilting up. (data is updated till 8/26/2010)
Friday, August 27, 2010
Correlation between weekly initial jobless claim and Dow
Weekly initial jobless claim has been showing great correlation with equity market. In the following graph, seasonal adjusted weekly initial jobless claim is plotted together with Dow jones industrial average index. For the most recent three years, the correlation between the two is about -0.93. A very good indicator for the market so far.
400K is a crucial level below which economists would think less possibility of recession. So far the level is high around 470K and the four week moving average is tilting up. (data is updated till 8/26/2010)
400K is a crucial level below which economists would think less possibility of recession. So far the level is high around 470K and the four week moving average is tilting up. (data is updated till 8/26/2010)
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