Here’s an update of the ECRI WLI for posterity purposes; nothing exciting is revealed and this is considered by me to be more a coincidence indicator than a leading indicator. The leading aspect of it (if anything) is that it remains very weak and has not trended into new highs, nor confirmed any new uptrend (yet).
It still remains within a zone of bounce or fail; 124.5 is the blue skies level that aligns with the prayers of all the popular brand name economagicians while 120.0 remains the confirmed failure of all things Keynesian. There is a 60 period (60 weeks) locally dominant minor cycle clearly evident – next minima projected Dec2013; more concerning is the larger 370 period major cycle with next maxima now, next minima out to Dec2015. Time will tell how the ring master conducts the remainder of this circus in bringing about the next uptick.
It should be beyond obvious that QE1, QE2 and QE.Twist are responsible for the 60 week cycles seen since Mar2009 low. Fumbling through and kicking the can is what this chart really confirms.
Trade the trends in the mean time, BTFD/STFT remains alive and well.