Citi Economic Surprise Index and S&P 500

The Citi Economic Surprise Index has risen sharply, but it has an inconsistent history in terms of its correlation with the S&P 500.

It is a cyclical indicator: high readings suggest favouring defensives over cyclicals, and low readings suggest favouring cyclicals over defensives.

Image: Renaissance Macro Research

Citi Economic Surprise Index and S&P 500