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SP500: Ratio % Stocks Above 50/200 DMA: Near Resistance Trendline ?
August 6 ( From Tradeview )
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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 ).
"Chance favors the prepared mind."
SP500: Ratio % Stocks Above 50/200 DMA: Near Resistance Trendline ? $SPY #Trading #Investing #SP500
SP500 Index Candles
SP500 % Stocks Above the 50 day moving average over the 200 day moving average ( Blue Line )
7 DMA of the RATIO ( Red Line )