FINANCIAL ICEBERG
Always consider hidden risks
​
 TECHNICALS
S&P Small-Cap ETF (IJR): Near Breakout?
​April 18 2016 ( From TradingView )







​The Situation
​
The S&P Small-Cap ETF IJR (iShares Core S&P Small-Cap ETF) is at Technical Crossroads to say ​the least.

​​Here is some technical observations:​​​
​1) IJR ETF is now at 19.0% from its bottom reached on February 11 2016 ​and SP500 (SPY ETF) is at only 14.7%​​​​. 
​
​​2) IJR ETF from highest peak price (reached on June 23 2015) to the 
​lowest ​price yet (reached on ​January 20 2016) was 22.0% and only 15.2% for ​the mighty SP500 (SPY ETF). ​​​​

The iShares Core S&P Small-Cap ETF made almost a double bottom technical pattern (January 20 2016
and February 11 2016 to painfully climb into a steep upward channel. (See First Chart Below - Channel) 

​Interesting to note that the IJR ETF is now testing the major resistance trendline that started back since June 23 2015. ​This is a crucial technical zone and Bulls need to break it for a continued outperformance of small cap stocks. (See First Chart Below - Red Trendline - Ellipse ).

​​​​​So the IJR ETF outperformed tremendously lately the mighty SP500 Index (SPY ETF) on a relative basis (ratio of IJR over SPY). This ratio reached the bottom of this cycle on January 19 2016 and now at the resistance trendline that started back since June 26 2015 for small cap stocks.  ​(See Second Chart Below - Red Trendline - Ellipse).

But the real interesting part is that at a time that we are testing the resistance trendline price wise and on a relative basis on the IJR ETF, it is also near testing the 200 DMA (Day Moving Average) on that ratio ratio (IJR over SPY), the ultimate battle to win for Bulls. We are trading below the 200 DMA on that ratio since October 13 2015. (See Second Chart Below - Red Trendline - Ellipse ).

So the next few trading session will be key for the IJR ETF and could become a real trading opportunity and needs a close follow up:  ​breakout or no breakout, that is the question!​​




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Daily RATIO
IJR ETF vs SPY ETF ( Candles )
​​20 DMA ( Yellow Line )
​50 DMA ( Red Line )​
200 DMA ( Green Line )​
​






Chart source: TradingView.com


IJR ETF
Daily Candles​ - Right Scale
​20 DMA ( Yellow Line ) 
​50 DMA ( Red Line ) 
200 DMA ( Green Line )





Chart source: TradingView.com


MMApr18IJRC1


MMApr18IJRC2


http://etfdb.com/etf/IJR/