lupas92

M2SL/SPX vs inflation and interest rate

Short
Indicator under study:
- M2SL (dollar supply)
- SPX500 (standard & poor 500)
- USINTR (interest rate)
- USIRYY (inflation)

Consideration on how the market could move:
- M2SL Up
- SPX500 Down
- USINTR Up
- USIRYY Up

- Inflation should be at peak
- Interest rate not at peak and the prevision tell they can double during the next month
- The Fed start to increase interest rate late respect the growth of inflation
- The Dollar supply is 27% over the trendline


Until the interest rate reach a peak it's difficult to see green candle in SPX. Because now it's more important slow down the inflation.

In history high interest rate imply bear market and recesion
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