S&P500 Index Range Shifted Up

Quite recently the Fed is adding 300B on it's balance sheet to save the economy from banking crisis. The move is effectively reversing the QT to temporary QE. As a result the amount of money supply circulating on the market is increase as shown on this Index Value Rainbow Indicator. Based on these fact we can expect the S&P500 index price range will be shifted up for quite significant amount higher than my previous prediction. S&P500 price could be moving somewhere between 3750 - 4400 in couple months to go.

We are using Index Value Rainbow indicator to measure the value of stock market index across various major indexes. This indicator shows multiple value of base Money Supply or Net Liquidity. For US market Net Liquidity formula is as follow:

NL = FBS - ( TGA + RRP)

NL = Net Liquidity
FBS = Fed Balance Sheet
TGA = Treasury General Account
RRP = Reverse Repo