This graph shows the relation GDP-SPX. We see that SPX and GPD are closely correlated. The higher the GDP growth, the higher the SPX growth. Credit/cash does not matter, as long as people live daily and buy.
But according to TA we see that momentum proving a downward trend and stochastic shows we have been in the overbought for several decades. Stochastic shows we have been dipping to oversold several times during the late decades, this is a sign of weakness or a coming period of oversold.
Thus we will dump to 1st support (lower black diagonal line). Market has been testing the 2nd support (upper black diagonal line).
We will soon be in a decade or two with 2007-2008 level. The shift from overbought to oversold stochastic has begun.
Market is ready to dump to weaker coming decades.
But according to TA we see that momentum proving a downward trend and stochastic shows we have been in the overbought for several decades. Stochastic shows we have been dipping to oversold several times during the late decades, this is a sign of weakness or a coming period of oversold.
Thus we will dump to 1st support (lower black diagonal line). Market has been testing the 2nd support (upper black diagonal line).
We will soon be in a decade or two with 2007-2008 level. The shift from overbought to oversold stochastic has begun.
Market is ready to dump to weaker coming decades.