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I did a little research looking for times when the $SPX was making new highs but the $RUT was in an extended period of correct. I found this Bull market take off In 1995.. It is interesting that it aligns almost exactly to the day of the year.
What our $SPX vs.. $RUT look like now – Currently at 42 since the $RUT has made a new leg-up high:
In November, 1995 it took 52 for the $RUT to correct while the $SPX made anemic new highs.
Of course one big difference in 1995 was the un-employment was waning (down to 6.5% from a high of 7.5%). But it has happened.
-http://ttthedge.com
You hear it every time the unemployment numbers comes out..
“Yeah its bad but unemployment always lags the recovery”
That is true when measured against stock prices, but how much is the lag?
About 6 months on average, you can go out 9 months but 8 months is a maximum norm. 8 Months from March 9th would push us to November, so right in here right now over the next two months we should start to see some improvement in unemployment to validate this bull run.
Time is running out on this recovery.. Let’s see if any of that stimulus money goes into anything else besides increasing companies bottom lines.
