CONSUMER COMFORT SIGNALS FURTHER MARKET UPSIDE LIKELY
The Consumer Comfort Index normally leads the S&P 500 Forward P/E. (Search MATASII site: Consumer Comfort for details). It is presently sending a strong signal that the markets should extend their current upward trend once the current consolidation is complete.
The Consumer Comfort Index is now diverging from the University of Michigan Expectations Index. However, it should be noted that the UoM Index exhibits a "Continuation Triangle" pattern, similar to what the the S&P 500 and DJIA are tracing out (though with flat bottoms versus flat tops).
History tells us that this is a signal for higher highs in the equity indexes going forward.