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The Market's Best Indicator Continues To Work Perfectly

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This is a chart we've written a ton about over the years.

chart

The blue line is the S&P 500. The red line is the inverse of initial jobless claims.

For over 5 years, they've moved in virtual lockstep, and they're doing it again. Lately the improvement on initial jobless claims has stalled out, and the rally in the S&P 500 has stalled out.

It alone is a good reason to think that fundamentals, not central banks, are what's driving this market.

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