Always consider hidden risks
SP600 : Volume A/D: Oversold Zone ?
July 27 ( From Stockcharts )
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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
mid-June and mid-July 2015.
Observe also that we came back near the 200 DMA ( Day Moving
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 ).
"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 )