FINANCIAL ICEBERG
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TECHNICALS
SP500 Index Technicals: Feel Home Alone ?
November 5 ( From TradingView )
November 5 ( 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 Red Trendline )
Since then, a huge rally but market internals continue to deteriorate...
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 Red Trendline )
Since then, a huge rally but market internals continue to deteriorate...
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SP500 Index Technicals: Feel Home Alone ? $SPY #investing #spy #SP500
RATIO
SP600 Small Cap Index
over
SP500 Index ( Top Panel - Blue Line )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
and SP500 Index ( Bottom Panel )
SP600 Small Cap Index
over
SP500 Index ( Top Panel - Blue Line )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
and SP500 Index ( Bottom Panel )
Financialiceberg.Com
Financialiceberg.Com
SP500 Index ( Daily Candles )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
200 DMA ( Green Line )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
200 DMA ( Green Line )
RATIO
Dow Jones Transport
over
SP500 Index ( Top Panel - Blue Line )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
and SP500 Index ( Bottom Panel )
Dow Jones Transport
over
SP500 Index ( Top Panel - Blue Line )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
and SP500 Index ( Bottom Panel )
Financialiceberg.Com
But very few of us have seen the technical weaknesses getting into the Mighty SP500 Index and that, since November 2014. In Fact the Dow Jones Transportation Average Index is Underperforming the Mighty SP500 since November 2014 as shown by the chart below...
Also, the small capitalization started to underperform the Mighty SP500 Index since June 2015 as shown by the chart below...
Financialiceberg.Com
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 chart below...
RATIO
SP500 Equal-Weighted Index
over
SP500 Index ( Top Panel - Blue Line )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
and SP500 Index ( Bottom Panel )
SP500 Equal-Weighted Index
over
SP500 Index ( Top Panel - Blue Line )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
and SP500 Index ( Bottom Panel )
And surprisingly to observe that the SP100 Index is outperforming the SP500 by far since April 2015 as shown by the chart below... A liquidity concern for a late cycle rally ?
RATIO
SP100 Index
over
SP500 Index ( Top Panel - Blue Line )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
and SP500 Index ( Bottom Panel )
SP100 Index
over
SP500 Index ( Top Panel - Blue Line )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
and SP500 Index ( Bottom Panel )
Financialiceberg.Com
Ok, may be you will say the the Dow Jones Transportation is not a good example; let s take then the New York Stock Exchange Index compare to the Mighty SP500 Index on a ratio basis. We reached levels last seen in December 2000 as shown by the weekly chart below...
RATIO
NYSE Index
over
SP500 Index ( Top Panel - Blue Line )
50 DMA ( Red Line )
NYSE Index
over
SP500 Index ( Top Panel - Blue Line )
50 DMA ( Red Line )
Financialiceberg.Com
SP500 Index is outperforming the Dow Jones Transporation Average, the NYSE Index, the SP600 Small Capitalization Index... Only the SP100 is outperforming the Mighty SP500 Index ; Feel Home Alone!