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SP500 Low Beta ETF SPLV: New High Ever?
June 30 2016 ( From  TradeView, CNN Money )
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​​The Situation

​​​The market participants never gave attention to that divergence that ​started from April 27 2016
​til now between Risk Taking ​behavior (stronger) and ​the ​Mighty ​SP500 Index that is within 
​a new rising wedge technical pattern. ​​​​​​​​(See chart below - Bottom Panel - Blue Trendlines).

In fact, the Mighty SP500 Index made a higher high on June 7 compare ​to the previous one
​reached on April 20 2016 but the Risk Taking behavior is lower now than the previous peak.​ 
​(See chart below - Top Panel - Ellipses).

​​​​The divergence is even more obvious on a weekly chart. As we reach now new highs on the SP500 Index, ​the Risk behavior pattern (ratio of High Beta Stocks to Low Beta Stocks on the SP500) didn t confirm yet. In fact, the risk taking behavior is at the lowest since mid-March 2016 as SP500 keep flirting near the high.  ​​​​​​​​​​(See second chart below - Top Panel (ratio) and Bottom Panel (SP500)).

​Also interesting to note​​ the Fear and Greed Index  from CNN Money is coming from ​Extreme Fear and as of June 29 is now at the Greed Level of 58.


But honestly, a few things puzzle me on that market behavior on the SP500 lately:

1) SPLV  ETF (PowerShares S&P 500 Low Volatility Portfolio) reached a new high ever as of June 29 2016.
​(See third chart below - Uptrend Channel - Ellipse) 

​​2) The percentage of the SP500 Index stocks above the 50 DMA (Day Moving Average) is within a pattern of lower highs and lower lows since mid-March 2016.  
​ (See fourth chart below - Top Panel % of stocks - Bottom Panel SP500 Index).

3) The SP500 Bullish Index is falling since March 30 2016 ( from 79.4% to 50.4% now), lack of confidence.

4) ​​Most of the best performing financial assets since the beginning of the year are usually defensive plays (except energy whici is a special case this year):
​bonds, dividend stocks, Utility Sector, Consumer Staples Sector​​.


That tells me how unconvinced market participants are about the market potential​​​ in terms of risk reward.

SP500 Low Beta ETF SPLV: New High Ever?   $SPY  #Trading #risk #spy  #lowbeta
Daily RATIO
High Beta - Low Beta ETFs​ ( Blue Line - Top Panel )
7 DMA ( Grey Line )​
SP500 ( Candles - Bottom Panel )​

Financialiceberg.Com
Weekly RATIO
High Beta - Low Beta ETFs​ ( Bar - Top Panel )
​SP500 ( Candles - Bottom Panel )​
DEFENSIVE
​RISK ON
Daily Chart
SPLV ETF (PowerShares S&P 500 Low Volatility Portfolio - Candles)​
Volume ( Blue Area)​
Financialiceberg.Com
Financialiceberg.Com
Daily Chart
Percentage of SP500 stocks above the 50 DMA - Day Moving Average ( Blue Line - Top Panel )​
SP500 Index ( Bottom Panel )​
Financialiceberg.Com