FINANCIAL ICEBERG
Always consider hidden risks
 TECHNICALS
SP500 and High/Low Beta ETFs: Breakout Divergence?
June 8 2016 ( From  TradeView, CNN Money )
If you would like to receive our free daily markets updates, please Sign-Up



​​The Situation

​​​The market participants never gave attention to that divergence that
​started from April 27 2016 til now between Risk Taking
​behavior (stronger) and ​the ​Mighty ​SP500 Index that is within 
​a breakout technical pattern. ​​​​​​​​(See chart below - Bottom Panel - Blue Trendline).

In fact, the Mighty SP500 Index made a higher high on June 7 compare
to the previous one reached on April 20 2016 but the Risk Taking behavior
is lower now than the previous peak.​ (See chart below - Top Panel - Ellipses).

​​​​The divergence is even more obvious on a weekly chart. As we reach now new highs on the SP500 Index,
​the Risk behavior pattern (ratio of High Beta Stocks to Low Beta Stocks on the SP500) didn t confirm yet.

 ​​​​​​​​​​(See second chart below - Top Panel (ratio) and Bottom Panel (SP500)).

Also interesting to note​​ the Fear and Greed Index  from CNN Money is coming from
​Extreme Fear and as of June 8 is now at the Extreme Greed Level of 81.


But honestly, 2 other things puzzle me on that Breakout on the SP500:

1) The weak volume on the breakout on the e-mini SP500 futures.​

​(See third chart below - Bottom Blue Area).

​​2) The percentage of the SP500 Index stocks above the 200 DMA (Day Moving Average) did not (like the Risk Taking Behavior above mentioned) make a new high on the breakout.  

​ (See fourth chart below - Top Panel % of stocks - Bottom Panel SP500 Index).
SP500 and High/Low Beta ETFs: Breakout Divergence?  $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 )​
RISK ON
Daily Chart
E-Mini SP500 Futures ( Candles )​
Volume ( Blue Area)​
Financialiceberg.Com
Financialiceberg.Com
Daily Chart
Percentage of SP500 stocks above the 200 DMA - Day Moving Average ( Blue Line - Top Panel )​
SP500 Index ( Bottom Panel )​
Financialiceberg.Com