S&P 500 Monthly Chart – Does the force of gravity exert a downward force?

 This is an interesting observation here on the S&P 500 Monthly Chart and its relationship to the Parabolic SAR indicator.

During the past 10 years, in each period of the uptrend identified by the Parabolic SAR indicator, I noticed the price of the index gradually got farther away from the indicator.  As a result, the correction became more severe.  As in each period, the index rose more sharply, the uptrend lasted shorter. 

2015 – 2016:  2130 – 1812 = 318 points correction.

2018 – 2019:  2940 – 2346 = 594 points correction.

2020:  3393 – 2191 = 1202 points correction.

If the force of gravity could possibly be applied here, the SAR is currently at 2805.  The recent high is 3950.  3950 – 2805 = 1145 points.  That is just enough for the index to fall to trigger the SAR to change the direction.  I am not saying it will happen in this manner, but eventually, the index and SAR will meet again.  Based on the history, it might be soon.  We just don’t know when.

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