We’ve noticed Money Base vs. Price action of SPY is highly correlated to future price action. US has entered a tightening cycle, and as of recent no communication from FED to expand the money base. In fact, the training wheels of QE where taken off EOY’14, which marked the FED jawboning comments to prop markets as valuations deteriorating. Screen Shot 2016-03-27 at 3.53.59 PM