[PLUS] November Weight of the Evidence Dashboard: Improving Trends Provide Bullish Tilt to Evidence
Key Takeaway: The recovery has begun to fall short of expectations but we are giving the economy the benefit of the doubt for now. Even with questions about the economy on the rise, central banks are having to confront persistent inflationary pressures. While not yet bearish, financial liquidity going forward is unlikely to be as market-friendly as it has been for years (central bank balance sheets have expanded 10-fold over the past two decades). Those are macro issues for the months ahead. Right now the weight of the evidence is back to a bullish mode following the upgrade to market trends and momentum. Sector-level momentum trends surged higher in October and weekly momentum trends are also turning up as stocks move into a seasonally strong period of the calendar.