Here is a chart comparing the Fed's balance sheet vs. the NASDAQ price since 2003. It seems like NASDAQ chases the balance sheet most times, but gets scared out during tightening (2018-2019), and now. The FED came to save the day in 2019, but will they now? The reaction here seems to price in what the FED balance sheet would be after tightening.
Looking at the S&P index long-term on a log chart gives a lot of perspective. Over the years since the great crash of 1929, which signaled the Great Depression, the S&P index has followed an exponential increase within the channel drawn here. There have been three occasions when we've gone into a "lull", i.e. a market that doesn't provide enough long-term...
