FINANCIAL ICEBERG
Always consider hidden risks
 TECHNICALS
SP100 Index: When Generals don t Lead
 February 13 2017 ( From TradingView )
If you would like to receive our free daily markets updates, please Sign-up



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 December 9 2016 ​at 102.55, so  rose by a ​
​factor ​​of 3.2 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)
Now near Resistance of a Rising Wedge (Top Blue Trendline).

What have been quite surprising is that big capitalization did under perform tremendously in that Bull Up wave lately since 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. Looking at a Daily ratio of the SP100 Index over the US Total Market Index, we are still into a Daily Downtrend Channel 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 under performing the ​NASDAQ Composite index (ONEQ ETF). Looking at the daily ratio of the NASDAQ 100 Index over the NASDAQ Composite Index, we can clearly observe that we broke a Major Support from a Rising Wedge. (See third chart below)

​​Also, there was already a developing strength among Small Capitalization stocks (TWOK ETF) before the US Election that did accelerate tremendously since; so small stocks outperforming tremendously the SP100 (The Generals) since the US Election. So more 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 outperformer compare to the SP100 Index (OEF ETF) on a relative basis (daily ratio of PSCT over OEF ETF as it reached a new high ever. (See 5th chart below - Blue Trendlines)

​​In Summary, we have now Generals that do not lead the market at all but small technology capitalization stocks. That tells me a more broad base rally instead of a classic Institutional Investors big cap rally. As the retail investor is chasing aggressively that rally into more illiquid technology stocks, the market becomes more vulnerable when/IF we will have a correction.


tatisticCode" src="Scripts/stats-tracking.js">
SP100 Index: When Generals don t Lead  $SPY #investing #spy #SP500 

Daily RATIO
SP100 Index​ ETF OEF
over

​US Total Stock Market ETF VTI Index (Candles)

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

Financialiceberg.Com
Daily Chart
​SP100 Index ETF OEF ( Candles)

Financialiceberg.Com