ISM Mfg Index Monthly Chart Versus SPX S&P 500 Daily Chart

The manufacturing recession is in full swing as evidenced by the ISM chart above courtesy of Trading Economics and annotated by Keystone. The big red line shows the clear downward trend over the last year. Conversely, the thick green line shows the firm uptrend in the US stock market driven by the Fed's and other global central banker's easy money. The manufacturing index should be moving higher in unison with stocks to prove the economy is in a healthy recovery. Instead, the manufacturing sector is puking and sick while stocks float higher as Chairman Powell prints money in the basement of the Eccles Building.

In the past, pre-central banker funny-money, a weak manufacturing sector would have driven the economy into recession. However, as technology expands, the job growth is in this new tech sector that develops and maintains robots performing and replacing human tasks. Most older men have hands with rawhide skin but most young folks nowadays do not like to get their hands dirty. Instead they treat their soft hands with anti-bacterial spray and moisturizers every hour while tapping gently on clean keyboards. Manufacturing simply does not have the clout it once had, however, a weak manufacturing sector in recession will eventually create a pall and sickness over the entire economy.

The charts clearly illustrate how easy it is to paper over problems, even major issues like a manufacturing recession, simply by printing money. Kneel, Worship and Sing Praise to the Power and Majesty of the Federal Reserve and other modern-day Money God's!

The red lines show the record highs in price occurring but the chart indicators are all in negative divergence. A neggie d spankdown is on tap in the daily timeframe unless happy trade deal chatter today creates a little more buoyancy. The two purple boxes on the left show prior fractals illustrating how price reverts to the mean once it is extended far above its moving average ribbon. The one pull back is almost to the 150-day MA support while the other only dropped to the 20-day. Just think, in the future weeks and months, price will be far below the 200-day MA. What do you think will happen with the purple box on the right? This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.