SPX Range explosion

23 нояб. 2020 г.

After seeing MagicPoopCannon 's post about the ES forming a major megaphone/widening wedge pattern I was remind about a post I did referencing the SPY's increasing range. I am re-posting a similar chart using the SPX because it has a decent amount of historical data. As you can see SPX has been expanding its range since 2008 and the price range has exploded since 2018. One could attribute the change to many things such as Fed stimulus, globalization of the markets, Robinhood traders, pandemics...ect. I choose to focus on one fact. The market is in a period of extremes.. Does this signal and imminent market correction? I have no idea, but it seems certain that if the current trend continues we will likely see price extremes we could not imagine 2 years ago.