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SPX performance vs PMI diverging significantly

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SPX yoy performance vs PMI Manufacturing index

Tried to replicate TeddyVallee's chart w/o z-scores he published on Twitter

Big divergences I could find are marked with flags. I may be missing a few so make your own decisions

Looks like when PMI and SPX diverged, most of the time SPX was correct!

Could it be that stocks are the first to feel the liquidity flood which then lifts the PMI?

My bet is even if there is a pull back, uptrend should continue and PMI should bounce next
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Today's strong ISM print (50.9) confirms that SPX was correct! So expect further strength in the economy and stock market in coming months

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