Always consider hidden risks
SPY ETF/Apple Shares:  A Tale of Two Wedges?
​May 31 2016 ( From TradingView, 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 twoWedges
technical pattern on a weekly basis on SP500 Index (SPY ETF) and
Apple Shares​.

​​In the case SPY ETF, we are within a Weekly Rising Wedge that 
started back since August 18 2015.​

​​ ​(See First Chart Below - Thick Red TrendLines)​

In the case of Apple Shares, ​we are within a Weekly Falling Wedge that
​started back since October 13 2014.
​​(See Second Chart Below - Thick Red TrendLines)​ 

The SPY ETF is making on a weekly basis higher lows but not higher
highs yet but quite near a Breakout.​
​​​ ​(See First Chart Below - Top Thick Red TrendLine - Ellipse)​

Also interesting to note​​ the Fear and Greed Index from CNN Money
​as of May 27 is now at the Extreme Greed Level of 78.

And few of us realize that in fact, Apple Shares are under performing tremendously the SPY ETF on a relative basis (ratio of AAPL vs SPY ETF - Daily Chart) since April 14 2016 when it reached the resistance trendline of a downtrend channel and broke soon thereafter the major support trendline that started back since June 28 2013! ​(See Third Chart Below - Red TrendLine - Ellipse) The Buffet mov
e since May 12 is only a dead cat bounce.


"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/Apple Shares: A Tale of Two Wedges? $SPY, $AAPL  #Trading #investing #aapl #SP500
SP500 Index
​(SPY ETF - Weekly Candles)

Daily Ratio
Apple Shares ( AAPL )
SP500 Index ( SPY ETF )​​
​​20 DMA ( Yellow Line )
50 DMA ( Red Line )​​
200 DMA ( Green Line )​
Apple Shares 
​(AAPL - Weekly Candles)