Expect worse unemployment numbers going forward. How do I know? Stock market told us!
What makes steady Employment? Social mood is what drives the markets, the economy, politics and the culture:
http://www.tradingstocks.net/html/socionomics.html
This is why we have rallied in the middle of bad news back in March 2009. At that time only 3% of traders were bullish. That meant a fuel of 97% of traders to turn to the bullish side and drive the stocks higher. After the stocks went up, we saw the effects of positive mood in the economy as layoffs decreased, consumer spent more and recession was declared over.
Now we are seeing the opposite once again. Going into the April 2010 top, we had 92% of traders bullish. That meant they were all candidates to turn bearish and drive stock prices lower. We had good earnings, better unemployment numbers. Yet the stock market started to sell off. Here is how technical indicators indicate the stock market top: