One non-obvious but historically accurate predictor of the stock market just hit its most bearish level since the internet bubble, says Marketwatch analyst Mark Hulbert. It turns out July’s big increase in consumer confidence was actually bearish for the market, since the Conference Board’s Consumer Confidence Index (CCI) is a contrarian market indicator at its extremes. In other words, extremely high values are bearish for stocks and extremely low values are bullish. The CCI stands today at its highest level in almost two decades, and that does not bode well for U.S. financial markets going forward, in Hulbert’s view. (Chart from Marketwatch.com, data from The Conference Board)
CCI highest level in almost two decades
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August 05, 2019