This has happened 2 times in the history of the S&P 500, will this time be the 3th
Markets prediction for the following years
“A lot of people are talking about the length of time the index is rising, and it is not possible that so many years we are in a rising market trend to all those who say this, I can say that from 1974 to 2000 there was a rising market trend -26 years. Let’s test our case by time – 12 years have passed since 2009 the markets rising- it is not close to 26 years record but what is more Interesting is the distance from the equilibrium point and long-term average bands – you can clearly see that we are not at the top or bottom the glass ceiling is currently in the range of 5900-6200 points this means in life everything has to be taken in proportion…..”
markets outlook |
In many respects, we are in a historical period in the markets, and we have already talked about that, the question everyone asks until when?
Note that I use a logarithmic graph for long periods
The linear scale shows the absolute number over time while the logarithmic scale shows the rate of change of the number over time.
Logarithmic price scale—represents price spacing on the vertical or y-axis dependent on the percentage of change in the underlying
When using a logarithmic scale, the vertical distance between the prices on the scale will be equal when the percent change between the values is the same, therefore this will be the more accurate view for long-distance periods and price changes
Now let's move on to the data
Let's start with large scales - you can see 3 of these on the graph
When it comes to closely examining the conduct, and the expected behavior it is worth noting the average strip of the price (red), throughout the trading period of the index, represents to us the equilibrium area to which the price aspires
It can be seen that in history crossing the region of the median strip, based on deviation percentage' Happened 3 times 1955 1987 1997 - If this time we cross this level again, then it can be said that this will be the fourth time
stock markets analysis |
What happened in all the previous 3 times?
Crossing the area upwards, in May 1955 led to further increases until August 1956, from there the index shuffled downwards until December 1957 (maximum 20% decline) and continued upwards until the 1970s where price declines occurred.
Crossing the area upwards, in January 1987 area led to a sharp rise of increases until August 1987, from where the index fell sharply and rapidly (maximum 30% decline) for two months and continued upwards until the 2000s where price declines occurred.
Crossing the area upwards, in May 1997 led to further increases until August 1998, from there the index decreased (maximum 20% decrease) in a period of two months and continued up until the 2000s where price decreases occurred
The imagination that caught my eye is the move that took
place in 1987 - if it does, then expect another move of increases, into the
year 2022 to May-August, where we will get a sharp and rapid downward price
realization similar to 1987
markets forecast |
Only time will tell - in the meantime, it's worth following
No comments:
Post a Comment