I need to correct this, since I was using memory and should have referred to the chart before posting.
The 1970s low for S&P500 was October 1974, lets say Q4 1974. Not 1976 as I erroneously typed above.
So end-ish of 1974
- 42 years = 1932 a great low
+ 42 years = late 2016 not so significant to look at thus far
This proposes the possibility of a cycle high or low end-ish 2016, let's put that as 2016-2017.
And that may be a top, or a bottom, or a breakout.
The trading interpretation is simple. Exercise care at this time. Bullish above the prices obtaining at or about 2017, bearish while under that level. Presently the S&P is above the price level indicated.
So what does this period in the SPX look like?
During late 2016 - early 2017, there are two breakouts visible. That's bullish indicating fresh money entering the market. However it also plants a stamp on the chart that we can appraise and say to ourselves: if price gets below those levels, then all that fresh money (or the parties that bought SPX off the fresh money entity) is on the wrong side and must sell to get out.
In other words, if SPX gets below there, this will get worse very quickly. If it doesn't then distribution will continue for a while more before the next big thing, which could be the turn below support, or could be accelleration to insane levels. The central bankers can only QE or QT (taper off the inflation). And if the SPX got back to these levels, the levels would probably be defended vigorously, so it can be a criteria for considering that a pullback is over or preparing to expand to a higher scale of pullback..