FINANCIAL ICEBERG
Always consider hidden risks
​
 TECHNICALS
Russell 2000 and DJ Industrial Ratio:  At Crossroads ?
July 28 ( From TradingView )
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​The Situation
​
​​​​​​Financial assets like the SP500 had a very good performance indeed; the small 
​capitalization start to underperform tremendously against big ones since March 
​18 2014 and finally reached a bottom on a relative value on October 10 2014.
( See blue line on the chart below ).​

​​It reached on a ratio basis, the highest level ever on March 18 2014 !​​
It started a severe correction since July 1 but finally reached a new bottom 
​on October 10 2014 followed by a strong dead cat bounce...

​We did break on the downside the 20 DMA ( Day Moving Average ) 
​on ​July 20 then at 1262.7 and the 50 DMA on July 21 then at 1258.5, 
​a ​bad technical sign indeed. ​​
​( 20 DMA Yellow Line and 50 DMA Red Line - on the second chart below  )​

​​Observe also the Breakdown on the Russell 2000​​ from a Major Support Trendline broken on June 29 2015 at the 1260 level ( now becomes Major Resistance ). ( Red Trendline on the second chart below - Ellipse )​

​​​​​​We are now testing the 200 DMA ( ( Day Moving Average ) zone on the Russell 2000 at 1213.7...
( 200 DMA Green Line - on the second chart below )​
​
On a Ratio basis ( Russell 200 over the Dow Jones Industrial ), the 21 Day Moving Average is in a downward phase ​( yellow ​trendline on the chart below ) since July 7, indicating an ​underperformance of ​​the ​Russell 2000 compare to the Mighty ​Dow Jones Industrial. ​( Grey Vertical Line ine on the chart below )​

But the most interesting factor is that we are testing a Major Support Trendline that started back on October 10 ​2014 on that ratio​​ ( Russell 2000 over DJ Industrial ).  ( Red Trendline on the chart below - Ellipse )​

The Russell 2000 is definitively at Crossroads now...​​





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Russell 2000 and DJ Industrial Ratio:  At Crossroads ?  $SPY, $IWM  #investing #russell2000  #dowjones #SP500 



RATIO
Russell 2000 Over Dow Jones Industrial ( Blue Line ) 21DMA ( Yellow Line )
SP500​​ ( Candles )






Russell 2000 Index ( Candles) 
​20 DMA ( Yellow Line )
​​50 DMA ( Red Line )
​​200 DMA ( Green Line )


Financialiceberg.com


Financialiceberg.com