Statistical Facts and Recent Stocks Rally
Hello everyone.
As the recent S&P rally followed a month-long bear channel, I have been thinking heavily on what can the facts and perspectives embedded in the price behaviour be. Although I have not yet come to a conclusion to which I can persuade myself for the aggressive regime change in the market (if that is what happened), I started to view the situation in terms of statistical facts and empirical laws of the price behaviour.
In particular, I encountered the following video, in which they explain the markets' behaviour is justified by a growing divergence between short term price action, and established long term statistical facts: https://www.youtube.com/shorts/W0KeaJtXVRo
What is your take on this? Does the thesis presented in the video make sense to you? Why, why not? Why did market move along the way it id in last 2-3 months? How does this connect to the prolonged trading range preceded it?