$SPY is Spying on You
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?
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.