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The S&P 500 Is at 38.58. Is That the Metric for Liquidity?
This is measuring liquidity being drained from the system as of the roll off and maturity of bonds on the Fed balance sheet. The upper green band is kind of the upper fair value that it could reach based on liquidity. The red band is the lower boundary. And then the black line is the actual price of the S&P 500. If it starts getting up into the upper band, you could probably expect maybe a pullback or that the vol the volatility is kind of reaching.