S&P500 Index (SPY) 100% Growth & Thoughts
As you know I rarely cover indexes,
just because most of the time they tend to rally.
However, I noticed one peculiar thing that I decided to share with you:
Covid crisis & consequent bearish rally started in February 2020.
Just in 29 days, the index lost 36% of its value.
With multiple stimulus packages,
it took 139 days for the market to return back to all time's previous historic high.
Then a bullish rally resumed.
During the last 334 days the market is growing sharply.
What is exceptional about that is the fact,
that from 2175 level (being a covid low) the index grew by 100%.
Of course, it is not a signal for us to sell, however, with these number it becomes clear
how overheated and overbought the market is.
Can it go even higher? Of course, it can.
However, be ready for major correctional waves.