As I stated in my July 12, 2010 post (“ECRI WLI Growth History“):
For a variety of reasons, I am not as enamored with ECRI’s WLI and WLI Growth measures as many are.
However, I do think the measures are important and deserve close monitoring and scrutiny.
The movement of the ECRI WLI Growth is particularly notable at this time. Below is a chart from Doug Short’s blog post of October 14 titled “ECRI Recession Watch: Growth Index Declines Further” :
(click on chart to enlarge image)
As noted on the chart, the most recent ECRI WLI Growth reading of October 7, at -9.6, is at depths rarely seen since 1965.
In conjunction with this reading, it is also important to take into account ECRI’s statement of September 30, which I featured in the October 3 post (“ECRI Recession Statement Of September 30 – Notable Excerpts“)
The Special Note summarizes my overall thoughts about our economic situation
SPX at 1224.58 as this post is written