Weekly Chart shown and Daily Fed Net liquidity indicator applied. This indicator shows fed inflow/outflow money’s based on their Quantitative tightening and easing (denoted by the green line). As you can see by looking at the circles drawn in, when Net liquidity becomes meaningfully extended above the price action, price eventually makes its way there, and the same goes with when the NL under-extends. Currently SPX is $4009 and its fair value (denoted by the Net liquidity indicator) is $3790 as of 1/16/23.
We are clearly down trending as we keep rejecting off the trend line. The play here looks to be an entry around $4050-4100 near the upper region of the trend line and a short all the way down to $3790. This is interesting as it would likely ripple over to $BTC and cause it to also decline.
Looking for this to play out around the end of February or early March.
We are clearly down trending as we keep rejecting off the trend line. The play here looks to be an entry around $4050-4100 near the upper region of the trend line and a short all the way down to $3790. This is interesting as it would likely ripple over to $BTC and cause it to also decline.
Looking for this to play out around the end of February or early March.