Sunday, October 23, 2011 EST

Purchasing Managers Index (PMI) is a very important sentiment reading, not only for manufacturing, but also the economy as a whole. Although U.S. manufacturing is not the huge component of total gross domestic product (GDP) that it once was, this industry is still where recessions tend to begin and end. For this reason, the PMI is very closely watched, setting the tone for the upcoming month and other indicator releases.

You can now find the Purchasing Managers Index (PMI) on MTR Investors Group plotted as a chart to compare with the S&P 500. This in addtion to the MTR Economic Model (MTR-EM) will help to provide a longer term view of market direction.

Click here for the interactive PMI Chart

Sunday, October 23, 2011 EST

The economic timing model was updated with October wages and employment data.

Real wages (green line), the primary series for the model, sits at -2.24% year over year ticked up a bit due to lower energy costs. The MTR-EM (as discussed here) goes up or down 2% more the market will typically follow as we have seen so far this year. The model would look for at least a +2% year over year change to indicate overall sustained higher prices for the market.

To view the interactive model click here