Grynn

Fed Net Liquidity suggests going short

SP:SPX   S&P 500 Index
The Fed Net Liquidity indicator is a concept discovered by Max Anderson to calculate the fair value of SPX ( S&P 500 Index ). The formula he shared on Twitter uses the Fed Balance Sheet , TGA (Treasury General Account), and Reverse Repo. The data for each component above is accessible on the FRED website.

Net Liquidity = Fed Balance Sheet - ( TGA + Reverse REPO)

Use with the SP500 Chart
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