FINANCIAL ICEBERG
Always consider hidden risks
​
 TECHNICALS
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