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SP500 Market Internals at Technical Crossroads?
April 17 2017 ( From  TradeView, CNN Money )
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​​​ ​The market participants never gave attention to that divergence that ​started
from December 9 2016 ​​til now between Risk Taking ​behavior (weaker) and ​
the ​​Mighty ​SP500 Index (SPY ETF) that made a new high ever on March 1 2017.
​(See first chart below - Bottom Panel).
Observe that the SP500 Index (SPY ETF) is ​within ​a daily rising wedge technical
​pattern but back below its break out zone.
 ​​​​​​​​ ​(See first chart below - Bottom Panel - Red Trendlines).

That Risk Taking behavior (according to the ratio of SP500 High Beta stocks -
​SHBP ETF - to the SP500 Low Beta Stocks - SPLV ETF) is trending down after peaking
post US Election on the Trumpification of Financial Markets. ​ ​
(See First Chart Below - Top Panel - Daily Candles)

​​​​The divergence is quite obvious on that chart below. As we reach new highs on the SPY ETF at the beginning of March, the Risk behavior pattern (ratio of High Beta Stocks to Low Beta Stocks on the SP500) didn t confirm that move at all. In fact, the risk taking behavior was already trending down tremendously at the end of February and the Fear and Greed Index  from CNN Money was then at the Extreme ​Greed Zone (was in the 80s in February 2017) and is now at the Extreme Fear Level of 25, another divergence with that risk taking behavior! Observe also previous divergences (ellipses) between risk behavior and the SPY ETF price action...

​A few obervations on that market behavior and the SP500 worth noting lately:

1) SPHB ETF (PowerShares S&P 500 High Beta Portfolio) reached a new high on this up cycle this year on February 16 2017 at 38.81 as it did reach and test the Major Daily Resistance Trendline of a Rising Wedge that started on April 22 2015! (See Second Chart Below - Red Trendlines)  SPHB ETF is at -5.8% below its peak price as of the ​close of ​April 13 2017 and SPY ETF is only at -3.2% below its previous peak at 240.32.​ SPHB is testing the Major Daily Support Trendline that started since February 11 2016 so Critical for Bulls...

​​​​2) SPLV  ETF (PowerShares S&P 500 Low Volatility Portfolio) reached a new high ever as of March 17 2017 and is in a slow bleeding behavior since then. as the SPHB ETF (who is within a Rising Wedge), SPLV ETF is evolving within the same Technical Pattern but from a more tiny one. And also completely contrary of High Beta Stocks ETF (which are testing already the Support of a Rising Wedge), SPLV ETF is not there yet.
(See Third Chart Below - Red Trendlines)  SPLV ETF is at -1.9% below its peak price as of the ​close of April 13 2017 and at the 50 DMA,  SPY ETF is at -3.2% below its peak price and closed below its 50 DMA.​

What we must realize is that the market is full Risk On. Not only that... The market is full Risk On with the most Big Capitalization High Beta exposure stocks (Technology, Social Media, Biotech...) at a time (historically speaking) that the seasonality in terms of Volatilty is increasing (VIX) til the third week of April and pressure arise for the SP500 Index as geo-political risks are increasing.

That tells me how convinced (or complacent?) market participants are about the market potential​​​ in terms of risk reward on a short term basis.
 SP500 Market Internals at Technical Crossroads?  $SPY  #Trading #risk #spy #investing #stocks

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Daily RATIO
High Beta - Low Beta ETFs​ ( Bar - Top Panel )
​SP500 Index ( SPY ETF -Candles - Bottom Panel )​
Daily Chart
SPLV ETF (PowerShares S&P 500 Low Volatility Portfolio - Candles)​
​20 DMA ( Day Moving Average - Yellow Line )​
50 DMA ( Day Moving Average - Red Line )​​
200 DMA ( Day Moving Average - Green Line )​​​
Volume ( Blue Area)​
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Daily Chart
SPHB ETF (PowerShares S&P 500 High Beta Portfolio - Candles)​
​20 DMA ( Day Moving Average - Yellow Line )​
50 DMA ( Day Moving Average - Red Line )​​
200 DMA ( Day Moving Average - Green Line )​​​
Volume ( Blue Area)​