Initial Jobless Claims starting to rise, S&P in for a correction

This week's initial jobless claims were rising again as reported by Zero Hedge and based on the obvious correlation between the S&P and initial jobless claims here, I expect that the S&P will come down eventually.

On top of that, the capacity utilization for the previous month was edging down (blue chart going up), which confirms that the unemployment rate will start going upwards (red chart going up).

 While deflation sets in with a lower CPI (red chart going down).

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Initial Jobless Claims Vs. S&P

This page is created to monitor the Initial Jobless Claims Vs. Standard & Poor's Index (S&P).

Whenever you get higher initial jobless claims (blue chart goes down), the S&P follows suit (red chart goes down).

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Correlation: Initial Unemployment Claims Vs. S&P

Another way to value the stock market is to look at the initial unemployment claims. You take the inverted chart of this metric and you will see that this is highly correlated with the S&P index.

Chart 1: Initial Unemployment Claims (Inverted) Vs S&P Index

So whenever you hear that the initial unemployment claims went up, you sell the S&P index.

Oh, and what do you know, weekly initial unemployment claims just went up:
http://www.marketwatch.com/story/us-weekly-jobless-claims-edge-up-to-352000-2013-04-18?link=MW_latest_news

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