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Russell 2k - DJ Industrial Ratio: Russell Underperforming  ?
October 14 ( From TradingView )
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​The Situation

​​​​​Financial assets like the Dow Jones Industrials had a very good performance indeed;
​the small ​capitalization start to underperform tremendously against big ones since March
​18 2014 and finally reached a bottom on a relative value on October 10 2014.
( See blue line on the chart below ).​

​​It reached on a ratio basis, the highest level ever on March 18 2014 !​​

On a Ratio basis ( Russell 200 over the Dow Jones Industrial ), the 21
​Day Moving Average is in a downward phase ​( yellow ​trendline on the
​chart below ) since July 7, indicating an ​underperformance of ​​the ​
​Russell 2000 compare to the Mighty ​Dow Jones Industrial.
​​( Grey Vertical Line ine on the chart below )​

But one interesting factor is that we broke a Major Support Trendline that started back on October 10 ​2014 on that ratio​​ ( Russell 2000 over DJ Industrial ) and the Underperformance of the Russell is more severe since then. . ( Red Trendline on the chart below - Ellipse )​

Observe also the Breakdown on the Russell 2000​​ from a Major Support Trendline broken on June 29 2015 at the 1260 level ( now becomes Major Resistance ). It did retest it on July 16 and was rejected.
​ ( Red Trendline on the second chart below - Ellipse )​

​​​​​​​We broke the 200 DMA (  Day Moving Average ) zone on the Russell 2000 on August 6 ( 200 DMA Green Line - on the second chart below )​
and had a Death Cross on September 2, another bad technical set up.

​​​​​​But the most interesting factor is that we tested on October 13 the 50 DMA ( Day Moving Average - Red Line - second chart below ) then at 1161.9 and also the Major Resistance Trendline that started back on July 16 and failed to break both levels.
​ ( Amber TrendLine - on the second chart below )​

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Russell 2k - DJ Industrial Ratio: Russell Underperforming ?  $SPY, $IWM  #investing #russell2000  #dowjones #SP500
RATIO
Russell 2000 Over Dow Jones Industrial
( Blue Line ) 21DMA ( Yellow Line )
Russell 2000 Index ( Candles)
​20 DMA ( Yellow Line )
​​50 DMA ( Red Line )
​​200 DMA ( Green Line )
Financialiceberg.com
Financialiceberg.com