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MarketWatch: This incredible chart shows the close relationship between the S&P 500 and Fed liquidity

Please tell me this isn’t true…

“Since SVB collapsed, the Fed has been adding liquidity, and the S&P 500 is up more than 10%. The high correlation between Fed net QE and the S&P 500 seen in the chart below suggests that Fed liquidity is a crucial driver of the stock market,” said Slok.

The Fed would dispute that the emergency lending programs put in place are a form of quantitative easing, but nonetheless, its balance sheet has expanded.

Slok also warned, however, that what the Fed gives, the Fed can take away.”