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.