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SP500: Ratio % Stocks Above 200 DMA: Too Bullish?
​July 15 2016 ( From Tradeview )
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​​​​The Situation

​We observed that the Ratio of the Percentage of Stocks of the
​Mighty SP500 Index ​Above the 200 day moving average is on a rise
since June 27 ​​with a new high in price ever for the SP500.


But few of us realize that the the post-Brexit panic was in fact an
​opportunityfor portfolio managers to rebalance at the end of
​month/quarter from cash ​and bonds to stocks. Also,the relative
​flight to quality and liquidity was in strong favor of US Equities​​
​and shows how resilient the Mighty SP500 Index is.

The performance of the SP500 index since June 27 is +8.16%
and looks like after the Technical Breakout of July 8 2016
the Stampede of Calgary as Buyers rushed and pushed the
​marketon an Overbought Stance on a short term basis.​​​​

Also interesting to note​​ the Fear and Greed Index from CNN Money
​as of July 14 is now at the Extreme Greed Level of 90.

But what is interesting indeed is that the Ratio of the Percentage of Stocks of the Mighty SP500 Index
​Above the 200 day moving average reached on July 14 the Resistance Trendline​​ that started on April 27 2016, level which in previous time was the signal for a short term peak in the SP500 Index.

(See Firt Chart Below -Top Panel - Blue Trendline)

Also quite interesting to me is that there is a huge divergence between the ​Mighty SP500 Index (a new high ever) and not a new high on the ratio since April 27 2016 (Ratio of the Percentage of Stocks of the Mighty SP500 Index ​Above the 200 day moving average).
​(See First Chart Below - Top Panel for the Ratio - Bottom Panel for the SP500 Index - Divergence).


 Louis Pasteur 
"Chance favors the prepared mind."

SP500: Ratio % Stocks Above 200 DMA: Too Bullish?  $SPY   #Trading #Investing #SP500 #spy
DAILY ​RATIO (Top Panel)
​SP500 % Stocks Above the 200 day moving average ( Blue Line )
7 DMA of the RATIO ( Red Line )​
SP500 Index (Bottom Panel)​

Financialiceberg.com