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From HeadlineCharts Blog:

http://headlinecharts.blog.com/

The ECRI has turned optimistic on the economy and that is great news and of course quite favorable for stocks. It means the market rally is more than just a bounce, but it don't think it means we won't see a retest of the market lows. Here is the latest from ECRI:

Reuters

April 17, 2009 - A weekly measure of U.S. future economic growth slipped, while its annualized growth rate climbed to levels last seen in October 2008, indicating that economic recovery is probable in the coming months, a research group said Friday.

The Economic Cycle Research Institute, a New York-based independent forecasting group, said its Weekly Leading Index slipped to 107.2 for the week ending April 10 from 107.4, which was revised lower from 107.9.

But the index's annualized growth rate -- which has seen nearly a six-month upswing -- rose to negative 19.7 percent from the prior week's rate of negative 20.9 percent, revised lower from negative 20.6 percent.

It was the highest yearly growth reading since the week of Oct. 17, 2008, when the rate plunged to a 33-year low of minus 17.1 percent, according to ECRI data.

"With the upturn in Weekly Leading Index growth continuing for over five months now, growth in U.S. economic activity will begin to improve in short order," said Lakshman Achuthan, managing director at ECRI.

The weekly index level fell because of higher interest rates and weaker housing activity and was partly offset by higher commodity prices, Achuthan said.