FOMC increase of 0.25% today and the daily RSI reaches oversold
The Great Inflation Fractal from 1966 - 1973 is tracking closely to current price movement.
We draw a correlation to the Great Inflation period (1965 – 1982) but we hone in on the early years from 1966 – 1973 as these early years are similar to the high inflationary period we find ourselves stepping into at present.
From 2018 - 2020 the S&P500 went through significant price volatility which took the form of a megaphone pattern. Megaphone patterns have been showing up a lot in the market recently, Tesla being a case in point. Megaphone patterns are more common in volatile markets and can offer us traders or investors a structural framework to work within.
KEY TA FOR S&P500
- RSI is now reaching into over bought zone on the daily
- However we can remain over bought for months
- Regardless it is worth noting that we are into
this over bought zone and higher risk territory