Always consider hidden risks
SPY ETF / AAPL Price Volume Trend:  A Tale of Two Worlds ?
​October 8 ( From Stockcharts , Columbus Dispatch, Barchart, TradingView  )
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The Situation

We observed that the Price Volume Trend of the SP500  tend to ​turn
​earlier ​and or confirm the trend of the Mighty SP500 as you may see
​in the chart below... The same idea for Apple Shares (AAPL).

Since we broke the Major Support Trendline on Apple Shares (AAPL )
​on August 4 and the Major Rising Wedge Support Trendline on August 20
on SPY ETF​​, ​PVT level cratered but at a lower level that the ​previous ​
​severe ​correction on October 2014. ​(See Charts Below - Bottom Panel - Ellipses)​

Apple Shares recovered sooner than the SP500 Index as PVT tested
​the October 2014 zone on September 16 2015 but SPY was far from
​that level.​

​​As SPY PVT get stronger from September 29 previous bottom and
​reached almost the September 16 peak, Apple PVT got weaker since
then, showing tremendous technical weaknesses.​

​​Another way to see that technical divergence between SPY and AAPL:

- On SPY we almost reached the 50 DMA ( Day Moving Average ) on ​October 7 then at 199.84​ ​
( See First Chart Below - Top Panel - Red Line - Ellipse )​ and the 20 DMA act as Support for now at 195.14 ( See First Chart Below - Top Panel - Yellow Line - Ellipse )

​- In the case of Apple Shares, we are still far from the 50 DMA ( at 113.39 on October 7 ) ​( See Second Chart Below - Top Panel - Red Line - Ellipse )​ and still below the 20 DMA at 112.97. ( See First Chart Below - Top Panel - Yellow Line - Ellipse ) ​The 107.31 zone is the Last Defensive Line for Bulls on AAPL.


"To fight and conquer in all your battles is not supreme excellence; supreme excellence consists in breaking the enemy's resistance without fighting."

-Sun Tzu, the Art of War

SPY ETF / AAPL Price Volume Trend: A Tale of Two Worlds ?  $SPY, $AAPL  #Trading #investing #aapl #SP500
Price Volume Trend - a Definition

​​PVT is a leading indicator for future price movements. Although interpretation of PVT is similar to the OBV and the Accumulation/Distribution indicators, PVT more accurately demonstrates the flow of money. PVT adds only a proportional amount of volume to the indicator, whereas OBV adds the same amount of volume not considering whether the market closes up a fraction of a point or triples in price.

1.Rising PVT means new money, sometimes referred to as "smart money, " is flowing into the marketplace. The result will be that the present trend will continue. Accelerating PVT rise indicates that "the masses" are joining the new price trend.
2.If the PVT then levels off, it is often an early warning that the trend is finishing.
3.Declining PVT indicates that the smart money is liquidating.
4.If the PVT moves sideways or falls while the price is rising, the increase in price is not confirmed and a market top or bottom may be indicated.
SP500 Index ( SPY ETF - Top Panel )
​​20 DMA ( Yellow Line )
50 DMA ( Red Line )​​
​Price Volume Trend ( Bottom Panel - Blue Line )

Apple Shares ( AAPL - Top Panel )
​​20 DMA ( Yellow Line )
50 DMA ( Red Line )​​
​Price Volume Trend ( Bottom Panel - Blue Line )