FINANCIAL ICEBERG
Always consider hidden risks
 TECHNICALS
US Stock Indices Technicals: Generals on the Front Line ?
 November 30  ( From TradingView )
If you would like to receive our free daily markets updates, please Sign-up



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 on ​August 21 2015​, ​​ ​game was over on SP500 on a short ​term basis and then ​reached ​then the panic ​selling level ​on August 24 at 1867.01. ​​( See Chart Below - Bottom Panel )

Since then, a huge rally ​​​occured but market internals continue to deteriorate...

In fact, the top 100 stocks of the SP Index is outperforming the Mighty SP1500 Index.Looking at the ratio of the SP100 Index over the SP1500 Index: when we have an uptrend channel and overshoot over it ( vertical lines - first chart below ), then history shows we had some consolidation...
​​
​Same pattern for the NASDAQ: the top 100 stocks is outperforming the ​NASDAQ Composite index. ​​
​Looking at the ratio of the NASDAQ100 Index over the NASDAQ Composite Index. 
( See second chart below )

​​Also, there is a developing weakness among “equal-weight” indexes versus their comparable cap-weighted versions as the equal-weight SP500 Index started to underperform tremendously since April 2015 as shown by the third chart below... So fewer stocks is participating to the rally...

In Summary, we have now Generals on the Front Lines​​ as most of the soldiers are left behind....
Are they only warning signs of a long consolidation​ or a pullback? Be the judge...


tatisticCode" src="Scripts/stats-tracking.js">
US Stock Indices Technicals: Generals on the Front Line ? $SPY #investing #spy #SP500 

RATIO
SP100  Index​
over​
​SP1500 Index ( Top Panel - Candles )
and
​SP500 Index​ ( Bottom Panel )

Financialiceberg.Com
Financialiceberg.Com
RATIO
SP500 Equal-Weighted Index​
over​
​SP500 Index ( Top Panel - Blue Line )
and
​SP500 Index​ ( Bottom Panel )
RATIO
​NASDAQ100 Index
over​
​NASDAQ Composite Index ( Top Panel - Candles )


Financialiceberg.Com