SPX 500 History

13 thg 1, 2023

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.