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SP:SPX has been enjoying lots of liquidity from the reverse repo facility at the Fed recently, but this balance is soon going to zero as indicated by the trend shown in the chart. The orange line is an inverted RRP chart to show the correlation with SPX going up. As liquidity in RRP runs out, the monthly SPX MACD also looks as if it's ready to swing down. The...

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The DXY was hammered when bad economic data came in last week. It also took a hit when a 30-year bond auction rallied the long bond, and caused yields to drop. This move of dropping also occurred as the Treasury issued bills almost every day of the month, but now there's a window where no bonds will be auctioned until Tuesday. The chart structure shows a falling...

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The reverse repo balance at the Fed represents trapped liquidity. When this balance comes down it means liquidity is released into the economy and markets. The M2 level lags the change in reverse repo by about 300 days. Because reverse repo changes have been steady for some time, it is possible to draw a trajectory for reverse repo going to zero, and then M2...

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The DXY is bouncing off of the top of a wedge pattern going back to highs in late 2022. The bounce has recaptured the 50 dma, which is on its way to crossing the 200 dma. This is otherwise known as the "golden cross" which can sniff out bullish reversals or starts to an uptrend. The falling wedge target for DXY is near the 117 level.

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The DEDO chart for NVDA has a channel with price taking NVDA to extreme levels of liquidity stress by historical metrics. December 2016 horizontal resistance is also converging with the top channel boundary. DEDO is suggesting that NVDA needs to correct in order to be in line with currently allocated liquidity at 5%, roughly 2x NVDA's mkt cap at the time.

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My theory is $SPX will correct from here per distribution process in progress, but where will it land? I will be following liquidity to determine this through various liquidity metrics and DEDO

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Playing out so far, it looks to be in Phase D, LPSY

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DEDO analysis shows that TSLA since January 2022 QT regime started, that lower highs in the price are coming with higher liquidity extension. TSLA is making one of these moves now, with divergence in liquidity pressure at a lower high. This is likely a good spot to look for reversal and a potential loss of the support in the ascending channel as QT continues,...

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The QQQ DEDO chart appears to be tapping a resistance line near the 0 bound. This suggests that QQQ is overextended against liquidity measures that support markets. This chart uses an estimated 50% central bank allocation to markets.