From Zero Hedge:

We need to acknowledge the historical reality that prior market bottoms have coincided with terrible (and worsening) employment conditions.

This is true even in the very bad recessions of 1957-58, and 1973-75. In the charts below, the orange line shows unemployment, and the blue line the S&P 500: the blue line often troughs while the orange line keeps getting worse. This is the basis for the whole "employment as a lagging indicator" argument.

Maybe it's different this time and employment is now a coincident indicator, but [if] that's the case, adherents to such a view should explain why.

Read full article (with great accompanying charts)…