EXPECT THE UNEMPLOYMENT RATE TO START RISING SOON

UNEMPLOYMENT RATE DECLINE ENDING

The unemployment data at 5.9% released on Friday is given the credit for the rally in equities which looks like continuing today. But how much lower can the rate drop? After peaking at 10.1% in October 2009 it has fallen 42 percent to 5.9% in one month short of 5 years. From the monthly chart below, which shows history back to 1968, you can see that the unemployment rate's RSI is down at 15.9...it made a low of 14.0 in June which means that it is making a small divergence but the important thing is that it has never been this low before.