The recession is now over. According to the National Bureau of Economic Research, the recession actually ended in June 2009. Oh, wait-wasn’t that more than a year ago? Welcome to the wonderful world of economics, where time travel is possible. But just in case Scotty is not able to beam you back to June of 2009, here is a nice illustration of why the S&P 500 is part of the Index of Leading Economic Indicators.
source: Yahoo! Finance (click to enlarge)
The S&P 500 bottomed in March 2009, three months ahead of when the time-traveling economists have now determined the recession ended. This is just another demonstration of why price matters and why price data is the primary input into our systematic relative strength process.
