CHART OF THE DAY: Central Banks Slowing Purchases → S&P500 Peaks

07/14/22 08:47AM EDT

Below is a chart and excerpt from today's Early Look written by Macro analyst Ryan Ricci.

Just by looking at the rate of change of total U.S. commercial bank asset’s these banks have been tightening since Dec 2021. More specifically, there was a large rate of change deceleration from Feb 2021 till March of 2021 (due to the largest base effects in their B.S. ever, ATHs).

Then there was a much smaller re-acceleration until December of 2021 when the B.S. started tightening. What happened in January of 2022? The S&P 500 peaked on 1/4/2022 at 4,794. Essentially, one month after U.S. commercial banks started tightening the S&P 500 peaked. The chart below outlines this timeline. Oh by the way, this chart has not stopped decelerating just yet.

CHART OF THE DAY: Central Banks Slowing Purchases → S&P500 Peaks - xx1

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