The S&P500 chart on a large time scale can be useful in defining what are the important market levels for one of the stock market’s index benchmarks. Considering the price/volume traded by the main stock market investors and financial institutions, it’s possible to see how the S&P 500 has been pricing by investors below two important price/volume levels: S&P500 3975 points where 22.9million contracts and 18.33 million contracts have been traded with other larger price/volume periods, making S&P500 3975 a major point of control that has been sold off, another important level has been S&P500 3876 with 48.29million contracts traded and also this price/volume point of control has been sold off, both as clear market signals that the fair market value of the S&P500 could have to be discounted. Hence, the largest price/volume action that has seen the S&P500 can be found in S&P500 2885 points value area, with 91.0 million contracts exchanged in the stock market.
Considering the macro-economic, financial, and monetary framework within the highly inflationary global economy, it could be possible that the S&P500 could be drifting into normalizing its exponential distribution occurred between 2020 and 2021, with a retracement to the S&P500 largest price/volume exchanged in the stock market.
The price-to-earnings ratio for the whole benchmark could probably decline to average levels between 15 and 12, in order to provide investors with value opportunities.
The S&P500 price-to-book value priced above the 2002/2003 lows, determined by the tech stocks bubble bursting.
Investors seem to presume quite high S&P500 earnings that could be disappointing for stock markets when larger declines in economic activities would be factored in earnings and profits.