S&P 500 IndexUpdated S&P 500 Entering Bubble Territory
I've been thinking the markets are overvalued for a while, let's say for the last 2 years.
Charting on a log graph tells me otherwise.
Past 2 years were definitely within the channel however now the US equity market is entering the bubble territory for sure.
It's interesting to note that Trump thinks the markets are overvalued - I believe it's something he said before he became president. Let's acknowledge the fact that he understands money better than any previous US presidents. I think he'll be the guy when the bubble pops, that will say - deal with it. Bubbles happen, bubbles pop, life goes on and markets recover.
Anyway, that's a side note but I do think this is a very interesting chart - BULLS PROCEED WITH CAUTION.
Charting on a log graph tells me otherwise.
Past 2 years were definitely within the channel however now the US equity market is entering the bubble territory for sure.
It's interesting to note that Trump thinks the markets are overvalued - I believe it's something he said before he became president. Let's acknowledge the fact that he understands money better than any previous US presidents. I think he'll be the guy when the bubble pops, that will say - deal with it. Bubbles happen, bubbles pop, life goes on and markets recover.
Anyway, that's a side note but I do think this is a very interesting chart - BULLS PROCEED WITH CAUTION.
Note
'Entering bubble territory' is an opinion - technically it's entering the upper channel of a channel based on trendlines going back to the 70s so I do think it is significant. As demonstrated in the previous years there is still room to run but I think the probability of another 5 year bull run without a major correction (20%+) is close to zero.
Note
Significant rejection at the middle trendline. Let's see how this plays out.Note
Is this the start of a 20%+ correction? Where does it end?
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.