Banana zone starts when PMI is above 53.Check your charts to verify this fact.
Total 2 with the US Purchasing Managers Index overlain.
The PMI is one of the most reliable leading indicators for assessing the state of the U.S. economy.
Previous Banana zones have coincided with the PMI above 53.
so not just when the economy is growing, but when the economy has entered humming along approaching full acceleration.
This is when most people will feel confidence and WANT to take on more risk as they are most optimistic about the future when the economy is in this state of being.
