FINANCIAL ICEBERG
Always consider hidden risks
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 TECHNICALS
SP500: High/Low Beta ETFs: Risk Taking Behavior Fading?
April 5 2016 ( From  TradeView, CNN Money )
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​​The Situation

​

​​​The market participants never gave attention to that divergence that 
​started from March 8 2016 til March 18 between Risk Taking 
​behavior (weakening) and ​the ​Mighty ​SP500 Index that was still
into a Grinding Pattern​ ​​​​​​​​(See chart below - Bottom Panel - Ellipse).

​​The divergence is even more obvious on a weekly chart. And we almost
​reached ​on the March 7 week, the resistance trendline of a downtrend channel
​that started back since ​May 2015. ​​​​​​​​​​(See second chart below - Top Panel - Downtrend channel).

​​​​The market reached on March 24 2016 a full risk fading status ​according 
​​to ​the ​ETFs ​High/Low Beta Ratio ​when the 7 DMA (Day Moving Average) ​finally turned downward... 
​ ​​(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 April 4 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 tested the daily resistance trendline form a downward channel  ​​​​​that started since August 20 2015 and fading. ​ (See chart below - Top Panel - Channel). Risk behavior is weakening indeed as the Mighty SP500 Index is near the resistance trendline that started back since May 2015...
(See chart below - Bottom Panel - Grey Trendline -Ellipse).


SP500: High/Low Beta ETFs: Risk Taking Behavior Fading?     $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 BEHAVIOR FADING