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TECHNICALS
SP500: High/Low Beta ETFs: Risk Taking Behavior Highest since April 2013?
March 3 2016 ( From TradeView, CNN Money )
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The Situation
The market participants never gave attention to that divergence that
started from January 20 2016 til February 11 between Risk Taking
behavior (weakening) and the Mighty SP500 Index that was holding
in a double bottom pattern. ( See chart below - Bottom Panel - Blue Trendline ).
The divergence is even more obvious on a weekly chart. And we reached
on the February 8 week, the support trendline of a downtrend channel
that started back since May 2015. ( See second chart below - Top Panel - Downtrend channel ).
The market reached on February 17 2016 a full risk On status according
to the ETFs High/Low Beta Ratio when the 7 DMA (Day Moving Average) finally turned upward...
( See chart below - Top Panel - Blue Line).The level of risk taking now according to that ratio is back at the zone reached at the beginning of April 2013.
( See chart below - Top Panel Amber Trend Line - Ellipses ).
Also interesting to note the Fear and Greed Index from CNN Money is coming from Extreme Fear and as of January 6 is now at the Greed Level.
But the most interesting technical pattern here is that we continue to have a Lower Risk Pattern Behavior on a Weekly Chart as we are still into that downtrend channel.( See second chart below - Top Panel - Channel ).
High/Low Beta ETFs ratio on a short term basis are near the daily resistance trendline form a downward channel that started since August 20 2015; .a dead cat bounce it is for now... ( See chart below - Top Panel - Channel ).
SP500: High/Low Beta ETFs: Risk Taking Behavior Highest since April 2013? $SPY #Trading #risk #spy #SP500
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 )
Financialiceberg.com
RISK ON
