TradingView
andreas0980
Dec 3, 2021 7:42 AM

beautiful channel Long

S&P 500 index of US listed sharesFXCM

Description

First Down to the Trendline, then up for Christmas Rallye and Window Dressing
Comments
Bill_Howell
Yes - Your SP500 heavy red trend line is approximately Fibonacci 1.0 down from the Apr-Sep2021 maximum upper-bound line. Question : Do you think that the rate of financial asset inflation has just now bent down to a lower level, perhaps down to the ~Mar2016-Nov2018 rate? (although a small part of that is real economic growth, not just 0% long-term interest-driven (debt, consumer purchases of foreign goods, hype, etc).

The rate of financial asset inflation is certainly way down from Sep2020-Apr2021. The 83 year, 1926-2020 baseline SP500 financial (inflation + growth) was roughly 3%/year (see below - not really the same number as it's semi-log, but good enough for now), much of which was probably real growth until perhaps 1980-2000 (I didn't dig into that).
SP500 1926-2020 semi-log trend = 10^(0.792392+2.89587*10^(-2)*(year - 1926.25)) price revolution*
SP500 1872-1926 semi-log trend = 10^(0.784617+1.40925*10^(-4)*(year - 1871.08))) price equilibrium*
*David Fischer 1996 "The Great Wave, Price revolutions and the rhythm of history"
More