Job Claims: Bullish or Bearish?
Jobless claims are at 49-year lows, and have historically spiked dramatically ahead of recessions. However, bear markets are typically preceded by low jobless claims, just as we’re witnessing now. For that reason, over the intermediate term, market technicians consider high claim figures to be bullish, and excessively low jobless claims bearish – a contrarian indicator. (Source: Putnam.com