This is a simple study where I use the SPX to GDP ratio on the log scale in an attempt to determine how far (on the long-term) the current post-COVID sell-off rally can go.
As you see the ratio is within a Channel Up since 1971 with clear Higher Highs and Higher Lows. I used the Fibonacci Channel to identify the pressure points and as you see the 0.382 - 0.618 zone is of high volatility, monopolizing the price action most of the time.
The chart shows that we shouldn't expect a (long-term) bear cycle before the price either hits the Higher High trend-line or roughly completes a 410% rise.
Do you agree? Feel free to share your work and let me know in the comments section!
Please like, subscribe and share your ideas and charts with the community!
!! Donations via TradingView coins also help me a great deal at posting more free trading content and signals here !!
As you see the ratio is within a Channel Up since 1971 with clear Higher Highs and Higher Lows. I used the Fibonacci Channel to identify the pressure points and as you see the 0.382 - 0.618 zone is of high volatility, monopolizing the price action most of the time.
The chart shows that we shouldn't expect a (long-term) bear cycle before the price either hits the Higher High trend-line or roughly completes a 410% rise.
Do you agree? Feel free to share your work and let me know in the comments section!
Please like, subscribe and share your ideas and charts with the community!
!! Donations via TradingView coins also help me a great deal at posting more free trading content and signals here !!
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💰Free Channel t.me/tradingshotglobal
🤵Contact info@tradingshot.com t.me/tradingshot
🔥New service: next X100 crypto GEMS!