FINANCIAL ICEBERG
Always consider hidden risks
 TECHNICALS
Russell 2000 vs SP500: At the Support Trendline ?
​October 1 ( From TradingView )
If you would like to receive our free daily markets updates, please Sign-Up



​The Situation

​Financial assets like the SP500 had a very good performance indeed; and the small
​capitalization outperformed ​big ones a lot but starting to meet huge resistance and
​turned bearish since March 24 2014....

​​Even the main technical indicators like the Russel 2000 Index and the ​SP500 is showing
​a triple top on a ratio basis. The first top was in October 2013 and the second one in
​January 2014 and the third one in March 2014. ​​Interesting to note that this ratio reached
​new highs and occured in a stock market correction in all 3 cases as you may ​see in ​
​the chart below ( Ellipses )...

The 21 DMA ( Day Moving Average ) turned downward on July 8 
​and then gives a long term sell signal for the Russell on a relative
​basis ​compare to the SP500...​​


But the real interesting part is that this ratio already Tested the Resistance Level ( On June 25 2015 ) from a Trendline that started on February 2012 and then can gives a real wall of Resistance to the Russell on a Relative Basis to the Mighty SP500. 
​​( See chart below - Red Trendline - ellipse middle of the chart ).

We are now back to the Critical Support Trendline on that Downward channel that started back on May 4 2015: breaking that support will bring a lot more underperformance from the Russell 2k vs the Mighty SP500.
​​( See chart below - Blue Line - Upward Channel ).


​​

Russell 2000 vs SP500: At the Support Trendline ?   $SPY, $IWM  #Trading #russell2000 #SP500
RATIO
Russell 2000 Over SP500 ( Blue Line )
21 DMA ( Top Panel - Yellow Line )
SP500 Index ( Candles )​​


Financialiceberg.Com