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R1 · PAYEMS × SP500

Jobs vs. market reaction

Good news should lift equities. When strong payrolls sell stocks off, the market is trading the Fed, not the economy.

STRAINED z = 1.13 PLAUSIBLE as of 2026-05-08

toward the strained side — above ~84% of its history

The dysfunction statistic, full history

Above the dashed zero line is the economically wrong direction — the relationship failing to do its stabilizing job.

The two series it watches

PAYEMS
1939 high 159,001 · low 29,923 · now 159,001 · 13 recessions shaded 2026
SP500
2016 high 7,600 · low 2,001 · now 7,584 · 1 recession shaded 2026

How it is scored

Correlation today (r)
0.1928
z vs. its own history
1.13 on the Fisher-transformed (arctanh) correlation — effective N ≈ 5 independent windows (from 94 overlapping readings)
Rule, pre-committed
z < 1 BEHAVING · 1 ≤ z < 2 STRAINED · z ≥ 2 with the wrong economic sign, held 2 consecutive readings, DECOUPLED.
Confidence
PLAUSIBLE — Surprise is proxied against the series' own trend (revised data, not real-time consensus); disclosed on Methodology.