S&P to GDP shows the Bull Market is far from overThis is a simple study where I use the SPX to GDP ratio on the log scale in an attempt to determine how far (on the long-term) the current post-COVID sell-off rally can go.
As you see the ratio is within a Channel Up since 1971 with clear Higher Highs and Higher Lows. I used the Fibonacci Channel to identify the pressure points and as you see the 0.382 - 0.618 zone is of high volatility, monopolizing the price action most of the time.
The chart shows that we shouldn't expect a (long-term) bear cycle before the price either hits the Higher High trend-line or roughly completes a 410% rise.
Do you agree? Feel free to share your work and let me know in the comments section!
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