This is a very simple and straightforward technical analysis on 
SPY of price action VS the Moving Averages.
A tried, True and Valid method of analysis is knowing when we have become to extended from the moving averages and determining that a return to the mean is appropriate.
In the case of theSPY, 
SPX or US500 we are more and more extended by the day.
For comparison I have included an image from the Dot Com Bubble Crash when we moved 47% away from the 20 Year Moving Average. Again in 2022 when we moved nearly 32% away from the 20 year moving average. The NDX for reference was almost 75%!!!! Off it's moving average in the Dot Com Bubble.
We currently sit at nearly 33% away from the 20 Year Moving Average.
To Say we are extended is an overstatement. Things will return to normal.
But will we have a spectacular blow off top first?
SPY of price action VS the Moving Averages. A tried, True and Valid method of analysis is knowing when we have become to extended from the moving averages and determining that a return to the mean is appropriate.
In the case of the
SPY, SPX or US500 we are more and more extended by the day. For comparison I have included an image from the Dot Com Bubble Crash when we moved 47% away from the 20 Year Moving Average. Again in 2022 when we moved nearly 32% away from the 20 year moving average. The NDX for reference was almost 75%!!!! Off it's moving average in the Dot Com Bubble.
We currently sit at nearly 33% away from the 20 Year Moving Average.
To Say we are extended is an overstatement. Things will return to normal.
But will we have a spectacular blow off top first?
All opinions while deemed valid by its operators and shared on this board are not financial advice and are primarily for Entertainment Purposes.
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All opinions while deemed valid by its operators and shared on this board are not financial advice and are primarily for Entertainment Purposes.
免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。