Always consider hidden risks
Russell 2000 vs SP500: Near Critical Support Trendline ?
October 27 ( From TradingView )
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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 at the Major Critical Support Trendline that started back on February 2 2010:
breaking that support will bring a lot more underperformance from the Russell 2k vs the Mighty SP500.
( See chart below - Amber Line - Bottom of the chart ).
Russell 2000 vs SP500: Near Critical Support Trendline ? $SPY, $IWM #Trading #russell2000 #SP500
Russell 2000 Over SP500 ( Blue Line )
21 DMA ( Top Panel - Yellow Line )
SP500 Index ( Candles )