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US Stock Indices Technicals: Generals on the Front Line ?
January 19 ( From TradingView )
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The Situation
We have been in one of the most Bullish Stock Market in history
since 2009. The Mighty SP500 Index from a low in March 2009
of
666.79 to the high ever on May 2015 at 2134.71 rose by a
factor
of 3.2 spurred by low interest rates and strong buybacks
from
US corporations.
In fact, when we broke a Rising Wedge Pattern on August 21 2015,
game was over on SP500 on a short term basis and then reached
then the panic selling level on August 24 at 1867.01. ( See Chart Below - Bottom Panel )
Since then, market internals continue to deteriorate...
In fact, the top 100 stocks of the SP Index is outperforming the Mighty SP1500 Index.Looking at the ratio of the SP100 Index over the SP1500 Index: when we have an uptrend channel and overshoot over it ( vertical lines - first chart below ), then history shows we had some consolidation...
Same pattern for the NASDAQ: the top 100 stocks is outperforming the NASDAQ Composite index.
Looking at the ratio of the NASDAQ100 Index over the NASDAQ Composite Index. ( See second chart below )
Also, there is a developing weakness among “equal-weight” indexes versus their comparable cap-weighted versions as the equal-weight SP500 Index started to underperform tremendously since April 2015 as shown by the third chart below... So fewer stocks is participating to the rally...
And if you wonder what the Big Picture looks like; well taking the ratio of SP100 ( The Generals ) over the SP500 on a weekly basis, we broke the resistance from a falling wedge that started back since 2001.
( See fourth chart below )
In Summary, we have now Generals on the Front Lines as most of the soldiers are left behind....
Are they only warning signs of a long consolidation or a pullback? Be the judge...
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US Stock Indices Technicals: Generals on the Front Line ? $SPY #investing #spy #SP500
Weekly RATIO
SP100 Index
over
SP1500 Index ( Top Panel - Candles )
and
SP500 Index ( Bottom Panel )
Financialiceberg.Com
Financialiceberg.Com
Weekly RATIO
SP500 Equal-Weighted Index
over
SP500 Index ( Top Panel - Blue Line )
and
SP500 Index ( Bottom Panel )
Weekly RATIO
NASDAQ100 Index
over
NASDAQ Composite Index ( Top Panel - Candles )
Financialiceberg.Com
Weekly RATIO
SP100 Index
over
SP500 Index ( Top Panel - Candles )
and
SP500 Index ( Bottom Panel )
Financialiceberg.Com