The S&P 500 is facing a significant correction due to the potential bursting of the Federal Reserve's asset bubble, which is currently driving its artificially inflated values. Amidst signs of overheating markets, soaring valuations, and unsustainable monetary policies, the equity market is on the brink of a major downturn.
The 2008 financial crisis, a debacle of epic proportions, wreaked havoc on a worldwide scale, decimating trillions of dollars in wealth. Subsequently, the COVID-19 pandemic, an unanticipated black swan event, exacerbated the situation, warranting an even more vigorous response from monetary authorities.
To offset these crises' debilitating effects, the Federal Reserve rapidly escalated its balance sheet from a figure shy of $1 trillion in 2008 to a staggering excess of $8 trillion by 2021. This monumental expansion was effected primarily via the purchase of government securities and other asset classes, essentially serving as the economic bellows to reignite the embers of the economy and replenish market confidence.
My prediction lies at the levels waiting beneath us including the 2.618, 4.236, 6.854, and 11.09....
A notable Fibonacci cluster is at 2,400... onky time will tell.
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This Local Micro SNP-500 schematic shows resistance from the low and we have just broken two local down Fib Schematics. As per original post, the market maker must have done this as to eliminate some Fibonacci extensions / clusters to focus the algos on the ones they want specifically. They create the market after all :)
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Revised Macro with Fib Spikes... Monthly opens and closes are very important with these schematics....
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Inverse Spikes on both LOG and REG scales. The difference is in the time frame and placement. The left two are the same and the right two are the same....
@Terence1776, Glad to hear that, not many people understand the macro in a market maker sense, the green lines all represent fibs from 1872-1942 and the pink fibs are from the high acting as support for a crash.