FINANCIAL ICEBERG
Always consider hidden risks
​
 TECHNICALS
Russell 2k - DJ Industrial Ratio: Russell Underperforming  ?
October 14 ( From TradingView )
If you would like to receive our free daily markets updates, please Sign-Up







​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  )​

​​

​







​​​

​





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