Asset & equity valuations are elevated across the board given unfettered QE. Loose monetary policy and a dovish Fed are no longer sustainable in the face of rising inflation at levels not seen since the late 1970's.
Major SPX retracement levels since 2020:
1. dot.com bubble realized >50% retracement
2. 2008 housing bubble realized >57% retracement
3. 2020 pandemic realized >35% retracement
Bringing these levels forward, SPX has realized nearly 15% correction from ATH... further correction is likely.
Given 3 previous corrections, this gives approximate correction targets of:
1. 35% retrace: 3140
2. 50% retrace: 2400
3. 57% retrace: 2050
Major SPX retracement levels since 2020:
1. dot.com bubble realized >50% retracement
2. 2008 housing bubble realized >57% retracement
3. 2020 pandemic realized >35% retracement
Bringing these levels forward, SPX has realized nearly 15% correction from ATH... further correction is likely.
Given 3 previous corrections, this gives approximate correction targets of:
1. 35% retrace: 3140
2. 50% retrace: 2400
3. 57% retrace: 2050
