S&P500 = PRICING IN THE MONEY SUPPLY
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In today's chart, we look at the S&P500 divided by the WM2NS (money supply).
The upward trend of the S&P500 has been unstoppable since 2009 and has climbed to new heights since 2013.
> However, as soon as you divide the chart with the "MONEY QUANTITY", the unadulterated chart = the reluctant truth is revealed.
= Regardless of the rising price of the index, it has not changed in real value / hardly noticeable.
= The "stock rally" was accordingly only the pricing in of the rising money supply.
We have been in a sideways channel for about 30 years:
= this was broken by the "DOT COM BUBBLE" and the "FINANCIAL CRISIS".
= in the chart, you can clearly see that the channel serves as support and resistance.
Currently, we are on the way to the bottom of the channel = another 18% - Downside.
> at this bottom, there is a high probability that we will run again to the other side of the range = 64 % - upside.
Looking at the 18% - downside in the S&P500, we would end up at around 3,000 points.
> The 3,000 mark not only goes over one with Fibonacci and POI levels, but also represents a strong DEMAND zone on the monthly chart.
> Based on this, we can expect a reaction in this area on a further down-sale.
Looking at the range, a scenario of further down-sale is more than likely and goes along with the opinion of many.
If this idea and explanation has added value to you, I would greatly appreciate a review of the idea.
Thank you and a successful trading!
The upward trend of the S&P500 has been unstoppable since 2009 and has climbed to new heights since 2013.
> However, as soon as you divide the chart with the "MONEY QUANTITY", the unadulterated chart = the reluctant truth is revealed.
= Regardless of the rising price of the index, it has not changed in real value / hardly noticeable.
= The "stock rally" was accordingly only the pricing in of the rising money supply.
We have been in a sideways channel for about 30 years:
= this was broken by the "DOT COM BUBBLE" and the "FINANCIAL CRISIS".
= in the chart, you can clearly see that the channel serves as support and resistance.
Currently, we are on the way to the bottom of the channel = another 18% - Downside.
> at this bottom, there is a high probability that we will run again to the other side of the range = 64 % - upside.
Looking at the 18% - downside in the S&P500, we would end up at around 3,000 points.
> The 3,000 mark not only goes over one with Fibonacci and POI levels, but also represents a strong DEMAND zone on the monthly chart.
> Based on this, we can expect a reaction in this area on a further down-sale.
Looking at the range, a scenario of further down-sale is more than likely and goes along with the opinion of many.
If this idea and explanation has added value to you, I would greatly appreciate a review of the idea.
Thank you and a successful trading!
Nota
The price has almost reached the sideways channel resistance.> At this, the S&P500 will struggle to break through.
> However, this fact confirms that we generally need a correction.
> Despite this, we will have to wait and see how the market reacts to this significant spot.
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