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Michael Green suggests that analyzing S&P 500 trends through its 200-day moving average may reveal surprising divergences.
He emphasizes the mean-reverting nature of sentiment compared to the unbounded trajectory of the S&P 500, suggesting that corrective movements could occur in both directions. Green's analysis comes as he discovers a new series on Bloomberg, highlighting how different chart transformations can portray varying market narratives.
Green’s observations on sentiment cycles and market trajectories build upon his earlier examination of shifting investment behaviors, notably his assessment of contrasts in ARKK inflows relative to 2021 dynamics. Furthermore, his current analysis of mean reversion aligns with his prior scrutiny of market sustainability at new highs, underscoring persistent questions about the durability of upward momentum in equities.