Always consider hidden risks
SP600 : Volume A/D:  Oversold Zone ?
​July 27 ( From Stockcharts )
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​The Situation

​We observed that the Volume Advance-Decline Percent of the SP600
​​​( SP Small Capitalization - so less liquid - we took a simple moving average 
​7 days ​to smooth the data ) ​​tend to turn earlier -  be more sensitive than the
​SP500 as you may see in ​the chart below...

When it gets near or under -20, we are going into an oversold  ​territory​​ as at 
​the end of May and June of 2015..​.

​​When it gets near or over +20, we are going into an ​overbought territory​​ ​as in
mid-June and mid-July 2015.

​​Observe also that we came back near the 200 DMA ​( Day Moving
​Average ) where past reversal occured.
(​Bottom Panel Below - Ellipses.)

This ratio is now within the oversold zone. And also the Bollinger
​Band is getting below the 0 threshold level also associated with
​market into oversold territory.
( See Bottom Panel - Second Chart Below ).

The SP500 Index ( SPX ) is within a rising wedge and the Support Trendline is below the 200 DMA.
( See Second Chart Below - Black Trendline ).

Louis Pasteur
"Chance favors the prepared mind."

SP600 : Volume A/D: Oversold Zone ?  $SPY #Trading #risk #investing #Emini #SP500

SP600 Advance/Decline in Percent ( Dots - Right Scale  - 7 DMA Blue Line )

SP500 index ( Black Line - Bottom Panel - 200 DMA Red Line )​​
( Bollinger Band in % - Bottom Panel )​