FINANCIAL ICEBERG
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 TECHNICALS
SP500: High Beta - Low Beta ETFs: Bottoming Out ?
August 31 ( From  TradeView, CNN Money )
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​​The Situation

​

​​The market participants never gave attention to that divergence that 
​started from May 8 2015 between Risk Taking behavior (weakening) and 
​the ​Mighty ​SP500 Index that was holding in a rising wedge pattern til it 
​broke finally on the downside on August 20.​
​​​​​​​( See chart below - Bottom Panel - Red Trendline ).

​​The market reached on August 26 2015 a full risk off status according 
​to ​the ​ETFs ​High/Low Beta Ratio ​when the 7 DMA (Day Moving Average) 
​finally turned up back then...  ( See chart below - Vertical Trendlines and Ellipses ).

The level of risk taking now according to that ratio is at the zone 
​reached ​at the beginning of August  2013 and rebounding in a dead cat 
​bounce type of pattern. ​​​​( See chart below - Top Panel Amber Trend Line - Ellipses ).
​
​​​Also interesting to note​​ the Fear and Greed Index from CNN Money is bottoming out​ but as of August 28 is still at the Extreme Fear Level.


​​​​​The SP500 Index (SPX) broke on August 20 a Rising Wedge Pattern. that started since December 16 2014.
​​​​​​ ( See chart below - Bottom Panel - Red Trendline ).

But the most interesting technical pattern here is that we got back above the Support Trendline​​ that started back on February 5 2015. The battle ground for the SP500 Index is now between that Support Trendline and the old Trendline form the Broken Rising Wedge that becomes resistance.
​​​​​​​ ( See chart below - Bottom Panel - Blue Trendline ).



SP500: High Beta - Low Beta ETFs: Bottoming Out ?     $SPY    #Trading #risk #investing  #SP500 


RATIO
High Beta - Low Beta ETFs​ ( Blue Line - Top Panel )
7 DMA ( Grey Line )​
SP500 ( Candles - Bottom Panel )​








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