Boom-Bust Barometer Hasn't Confirmed S&P500 New Highs

The boom-bust barometer, which compares commodity prices to unemployment claims as gauge for economic activity, has had a strong correlation to the S&P 500 over the past 10 years. However, the boom-bust barometer has not confirmed the new highs made by the equity markets so far this year. The barometer has remained below the high it made in September while the equity market has continued to rally higher. We saw a similar configuration in 2011-2012 but it will be interesting to see if the barometer can break out to new highs once again.