This chart shows the SPX/M2 and essentially paints a picture of the SPX when accounting for inflation.
All the "gains" made in the time following the 2008 crash, after factoring inflation in, simply put price or "value" back to where it peaked.
How interesting that the 2020 crash should occur at such a pivotal TA level, forming a near perfect sweep of highs and double top.
From this view, it looks as though the price action following the 2020 march lows is simply amounts to a bearish retest.
Will be an interesting one to watch as the money printer fires up yet another round of QE.
Brrrr, brrrr, brrrr.....
All the "gains" made in the time following the 2008 crash, after factoring inflation in, simply put price or "value" back to where it peaked.
How interesting that the 2020 crash should occur at such a pivotal TA level, forming a near perfect sweep of highs and double top.
From this view, it looks as though the price action following the 2020 march lows is simply amounts to a bearish retest.
Will be an interesting one to watch as the money printer fires up yet another round of QE.
Brrrr, brrrr, brrrr.....
As some savvy economists correctly pointed out in the comments, this chart can be described more accurately as a look at the SPX when accounting for changes in money supply. The M2 money supply has inflated with the growth of the economy and with a period of unprecedented expansionary monetary policy, which has no end in sight.
We appreciate the dialogue taking place in the comments and the learning opportunities that are being presented there!