SPX vs. M2

The chart shows the development between the Money supply of the USA M2 versus the prices of the Standard & Poors 500 an also the small and short recessions we had.
Naturally, also the foreign holders of SPX equities, with their money the switch in USD were responsible for higher SPX prices.

Neverthenless, the chart shows over the years a high coincidence between M2 and SPX.
And also shows the irrational exuberations very good (Mr. Greenspan).

Overall, also in historic view - there has to be a sharp correction in the SPX.
Or a bloody flood of central bank money will provide for the required balance.