If we take a look a the RSI on a monthly for the SPX 500 over the last 70 years we can see a pattern emerge , the RSI level 42.30 seems to be a very important level where many rally's have started.
Over the last 70 years price has bounced off this level 10 times including the last bounce in 2022 , once price bounces off this level it signals a multi month rally.
1949
1957
1962
1978
1982
1987
1990
2011
2020
2022
There have been only three times where SPX has bounced off this level and failed to rally .
1969
2001
2008
Its amazing how in 70 years we only had 13 of these signals fire off . This could very well be a once in a life time opportunity to get into the market .
The SPX 500 has a much higher probability to rally than not based the historical data on this chart. It is possible that we going into a decade long contraction , similar to 1950-1960 where you can get all time highs and rally's but then followed with years sideways accumulation.
Over the last 70 years price has bounced off this level 10 times including the last bounce in 2022 , once price bounces off this level it signals a multi month rally.
1949
1957
1962
1978
1982
1987
1990
2011
2020
2022
There have been only three times where SPX has bounced off this level and failed to rally .
1969
2001
2008
Its amazing how in 70 years we only had 13 of these signals fire off . This could very well be a once in a life time opportunity to get into the market .
The SPX 500 has a much higher probability to rally than not based the historical data on this chart. It is possible that we going into a decade long contraction , similar to 1950-1960 where you can get all time highs and rally's but then followed with years sideways accumulation.
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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.
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.