FINANCIAL ICEBERG
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 TECHNICALS
SP500: Ratio % Stocks Above 50/200 DMA: Near Resistance Trendline ?
​August 6 ( From Tradeview )
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​​​​The Situation
​
​We observed that the Ratio of the Percentage of Stocks of the Mighty SP500 Index 
​Above the 50 day moving average over the 200 day moving average is on a rise 
​with a new high in price for the SP500 since mid-October 2014 as you may see 
​in the chart below...  

​​But since reaching a peak on November 21 2014 on the ratio, observe the huge 
​divergence that started since then; a new ​high for SP500 at the end of December 
​and thereafter ​at the end of February ​but not for the 7 DMA of that ratio; 
​
​​A new high on SP500 on May 20 2015 compare to the previous 
​high on February 25 2015 and the one before on did not bring that 
​ratio near the previous highs of November 28, reflecting a huge 
​divergence and weaker technical market. That changed on July 14.
​( see red trendlines and ellipses - top and middle of the chart below ).
​
​​The 7 DMA ( Day Moving Average ) on that Ratio Turned to a 
​Bullish Stance on August 3. ( see red line -ellipses on the chart below ).

But what is interesting indeed is that this ratio tested and broke on July 14 the Resistance Trendline​​ that started on November 21 and broke that negative divegence we had since November 2014. It did retest that Trendline ( now becomes Support Trendline ) on July 25 and rebounded to get almost to the next resistance trendline ( Top Amber Line ) that is critical for Bulls to break for another upwave impulse.

​​The Mighty SP500 Index is within a Rising Wedge Technical Pattern. It did not reach yet a Major Trendline on a Rising Wedge since the Break Out on the Ratio. ​
​We must follow that carefully... Strenghtening Technicals to me still...
​( Ratio Major Resistance Trendline: see red trendline - ellipses on the chart below. SP500 Wedge - see blue Trendlines ).







 Louis Pasteur 
"Chance favors the prepared mind." 



SP500: Ratio % Stocks Above 50/200 DMA: Near Resistance Trendline ?  $SPY   #Trading #Investing #SP500 


SP500 Index​​ Candles
​RATIO
​SP500 % Stocks Above the 50 day moving average over the 200 day moving average ( Blue Line )
7 DMA of the RATIO ( Red Line )​










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