Stock Market -- Fundamental Note

The correlation of the weekly cyclical coincident indicator with the weekly action of the stock market has dropped from the .65 area down to .50 over the last several months. Week to week then, it has
been a little tougher to glean the fundamentals attracting the most attention from investors. However,
it is interesting that both the indicator and the SP 500 are flat with their respective readings at the
end of Jan. So, both the market and the indicator have round-tripped over the Feb. - early Jun.
period. The weekly cyclical indicator has been stabilizing over the past month or so, and seems
likely to continue doing so for a few more weeks. The suggestion here from the fundamental side
is that perhaps the stock market will also regain more stability in the short run. However, it is
important to remember that there has been recent moderate erosion in correlative behavoir of the
market and the indicator.