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<\/p>\n\n\tBy Rudi Filapek-Vandyck<\/p>\n
\n\tThe latest market update by BTIG Chief Market Strategist Mike O’Rourke includes a price chart suggesting the S&P500 index in the US is poised to put technical support to a test at 1100. At the overnight closing level this is only 20 more points away.<\/p>\n
\n\tThe same market update also includes another chart showing a clear divergence during the overnight session between the US dollar and US equities. This chart really sums it all up: as long as the euro remains under the pump all speculation about when and whether risk assets will be able to find a bottom remains just that; speculation.<\/p>\n
\n\t<\/p>\n
\n\tMeanwhile, market bears such as Glushkin Sheff's strategist David Rosenberg are enjoying their moment in the sun.<\/p>\n
\n\tRosenberg has again grabbed the opportunity this week to reiterate his message to investors: time to wade into the risk pool is when the US ISM Manufacturing index is at 30. The time to scale out is when the index hits 60 – which happened last month.<\/p>\n
\n\tWith the US Fed's Empire State manufacturing survey dropping from 31.9 in April to 19.1 this week, Rosenberg sees more and more evidence pointing towards a slowdown in US manufacturing, and the economy overall.<\/p>\n
\n\tThe latest update for the Empire State manufacturing survey represents the lowest level in four months and the steepest monthly decline since December 2009, highlights Rosenberg.<\/p>\n
\n\tIn addition, one of his other pet indicators, the ECRI leading index, appears to be painting a similarly sobering outlook.<\/p>\n
\n\tFor the week ending May 7, the ECRI leading index fell 2%, which is the largest fall since the week of December 5, 2008. The level for the index is now at 132.00, the lowest level in 10 weeks.<\/p>\n
\n\tThe smoothed index also continues to slow down, now at 12.2% for the week, marking a deceleration from the 12.7% pace the prior week and well below the near 30% pace recorded back in early October 2009. This index, points out Rosenberg, is now running at a 40-week low.<\/p>\n
\n\tHis message to investors: “Just as the coincident indicators are rising (employment, production), the leading indicators are rolling over. Do not drive looking through the rear window – it’s time to take risk and cyclicality off the table.”<\/p>\n","protected":false},"excerpt":{"rendered":"
Observations made by market strategists at BTIG and Glushkin Sheff.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[26],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/56633"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=56633"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/56633\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=56633"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=56633"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=56633"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}