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SP100 Index: When Generals don t Lead?
 June 9 2016 ( From TradingView )
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The Situation

We have been in one of the most Bullish Stock Market ​in history
​since 2009.​ The Mighty SP500 Index from a ​low in March 2009 ​of
​666.79 to the high ever on May 2015 ​at 2134.71 rose by a ​factor
​​of 3.2 spurred by low interest ​rates and strong buybacks ​from
​US corporations.

In fact, when we broke a Rising Wedge Pattern Major Resistance on ​June 6 2016​, ​​ ​game was over on SP500 on a short ​term basis for Bears
 ​​(See First Chart Below - Red Trendline - Ellipse)

What have been quite surprising is that big captalization did under perform in that Bull Up wave lately.

In fact, the top 100 stocks of the SP Index is under performing the Mighty SP1500 Index since April 21 2016. Looking at the ratio of the SP100 Index over the SP1500 Index: we did break the support trendline on a relative basis on April 25 2016. (Second chart below - Red Trendline - Ellipse)
​​
​Same pattern for the NASDAQ: the top 100 stocks is under performing the ​NASDAQ Composite index. ​​
​Looking at the ratio of the NASDAQ100 Index over the NASDAQ Composite Index. (See third chart below)

​​Also, there is a developing strenght among “equal-weight” indexes versus their comparable cap-weighted versions as the equal-weight SP500 Index started to outperform tremendously since April 7 2016.
​(Fourth chart below)... So more stocks is participating to the rally...

But the real interesting part is to acknowledge that the Small Capitalization stocks (SP600 Small Cap Index) is outperforming tremendously the SP1500 broad Index on a relative basis (ratio of SP600 Small Cap Index over the SP1500 Index). Not only we did outperform this week but we broke a Major Resistance Trendline on a relative basis that started back since March 18 2014. (See 5th chart below - Red Trendline - Ellipse)

​​In Summary, we have now Generals that do not lead the market at all but small capitalization stocks. That tells me a more braod base rally instead of a classic Institutional Investors big cap rally.


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SP100 Index: When Generals don t Lead? $SPY #investing #spy #SP500 

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SP600 Small Cap Index​
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