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SP100 Index: When Generals do Lead
 March 06  2017 ( From TradingView )
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We have been in one of the most Bullish Stock Market ​in history
​since 2009.​ The Mighty SP100 Index (OEF ETF) went from a ​low in March
​2009 ​​of ​32.02 to the high ever on March 1 2017 ​at 106.85, so  rose by a ​
​factor ​​of 3.3 spurred by low interest ​rates and strong buybacks ​from
​US corporations and lately by the Trumpification of Financial Markets.


​In fact, when we broke the Major Resistance of a Daily Wedge Technical ​
​Pattern on ​July 8 2016​, ​​ ​game was over for the Bears on SP100
(Known as
​The Generals) on a short ​term basis. 
​​​(See First Chart Below - Red Trendline)
Still into a Steep Daily Rising Channel.

What have been quite surprising is that big capitalization did under perform tremendously in that first Bull Up Wave from the US Election as protectionism themes were factored in...In fact, the top 100 stocks of the SP Index (OEF ETF) is under performing the ​US Total Stock Market (VTIETF) Index since November 9 2016 til December 8 2016 when a strong reversal occurred. Looking at a Daily ratio of the SP100 Index over the US Total Market Index, we are now testing a Major Resistance Trendline on a relative basis that started back since February 11 2016. ​(Second chart below - Blue Trendlines)
​​
​Same pattern for the NASDAQ: the top 100 stocks (QQQ ETF) is out performing the ​NASDAQ Composite index (ONEQ ETF) since December 12 2016. Looking at the daily ratio of the NASDAQ 100 Index over the NASDAQ Composite Index, we are now testing the 200 DMA (Day Moving Average). (See third chart below - green line)

​​Also, there was already a developing strength among Small Capitalization stocks (TWOK ETF) before the US Election (small stocks outperforming the SP100 (The Generals)) til December 9 2016 when a reversal occurred.  So less stocks is participating to the rally... ​(Fourth chart below)

But the real interesting part is to acknowledge that the Small Tech Capitalization stocks (SP600 Small Cap Information Technology Index PSCT ETF) is the real underperformer compare to the SP100 Index (OEF ETF) on a relative basis (daily ratio of PSCT over OEF ETF as it broke the Daily Resistance Trendline on February 24 2017 and corrected quickly since. (See 5th chart below - Blue Trendline)

​​In Summary, we have now Generals that do lead tremendously the market and small technology capitalization stocks as well as High Beta Stocks. That tells me that more market participants are choosing liquidity at the mercy of illiquid technology stocks. Usually we see that behavior in last part of a Bull Market Cycle.


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SP100 Index: When Generals do Lead  $SPY #investing #spy #SP500 

Daily RATIO
SP100 Index​ ETF OEF
over

​US Total Stock Market ETF VTI Index (Candles)

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Daily RATIO
SP100 Index ETF OEF
over​
​Russell 2000 Index ETF TWOK (Candles)
Dailly RATIO
​NASDAQ 100 Index ETF QQQ
over​
​NASDAQ Composite Index ETF ONEQ  (Candles)
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Daily RATIO
SP600 Small Cap Index​ (PSCT ETF)
over​
​SP100 ETF ETF OEF (Candles)

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Daily Chart
​SP100 Index ETF OEF ( Candles)

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