What Happens When Consumer Confidence Falls 10-Points?

Consumer Confidence fell 10 points last month.

That is a relatively rare event, occurring only 21 times in the 400 months or so the survey began its monthly format in 1977.

James Bianco notes that “Almost every such 10-point drop can be attributed to an unusual market-moving event.”

Stock market performance following these drops are usually poor:

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chart via Bianco Research

Stock market performance following these drops are usually poor:

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Bianco adds: “This is not meant to imply a cause and effect relationship, but is certainly something worth watching over the following months…”

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