FINANCIAL ICEBERG
Always consider hidden risks
 TECHNICALS
SP500 Index (SPY ETF): Zoom In Zoom Out
 August 6  2017 ​( From TradingView , CNN, Stockcharts)
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​ ​In these Greedy times (good to know that​​ the Fear and Greed Index ​from
​CNN Money is coming from the Extreme Greed Zone just one month after
​the US Election to ​the ​Greed Level now at 64). It is interesting to look the ​
​behavior ​of the SP500 Index (SPY ETF), smallcaps and foreign stocks.

​​​Few of us realize that the SP500 index (SPY ETF) started a Bullish Trend
just before the US Election; bottoming out on November 4 2016 ​(close at 208.55) to make a Breakout on November 25 2016 (from a Major Resistance Trendline that started back on May 20 2015)​ ​(See first chart below - Lowest Thick Yellow Trendline) to reach a closing price of 247.41 on August 3rd 2017 (high ever was 248.00 reached on July 27 2017). So the SP500 Index (SPY ETF) is up +18.6% since November 4 (excluding dividends).
The SPY ETF is now evolving within a Daily Rising Wedge Technical Pattern. (See First Chart Below - Red Trendlines).

​​Quite interesting to note that most of the strong performance of the SPY ETF comes from the Technology Sector (XLK ETF) with +24.8% since the close on November 4 2016. We are now at the Major Weekly Resistance Trendline on a Relative Basis (Weekly Ratio of XLK ETF / SPY ETF) that started back in January 2004 as shown by the second chart below (Grey Trendline). 
​​
But the real interesting but troubling part is to acknowledge that the Small Tech Capitalization stocks (SP600 Small Cap Information Technology Index PSCT ETF) is the real Under Performer compare to the SP500 Index (SPY ETF) on a relative basis (daily ratio of PSCT over SPY ETF as it reached the lowest level since April 2017 and broke the 200 DMA (Day Moving Average-green line). (See Third chart below). It seems obvious to me that only few big capitalization stocks out performance are hiding some weakness on the broad market...

What strikes me the most is that the Technology Sector Bullish Percentage Index is in fact declining since peaking in April 2017 (See Fourth Chart Below) and that a few Tech stocks have been outperforming; what a huge divergence indeed between market sentiment and the price level of the XLK ETF!

Also, we must realize that the Mighty SP 500 Index (SPY ETF) out performed tremendously since the US Election the large and mid capitalization of non US equities ( ACWX-iShares MSCI ACWI ex U.S. ETF ) on a Relative basis (daily ratio of SPY ETF over ACWX ETF).(See Fourth Chart Below)​ After peaking on the December 26 2016 week, SPY ETF started to Under Performed Tremendously the ACWX ETF. Few of us realize that we broke a Major Weekly Support Trendline (See Fifth Chart Below-Blue) last week meaning that we should expect the US Equities to Under Perform the non-US Equities...

As the most hated bull market in history continue its long stretch, it remains a very atypical market as momentum seems more important that value investing. As geo-political risks is on the rise, market behavior is still on the complacency side...​​​​As the retail investor are chasing aggressively that rally into more Big Cap technology stocks, the market becomes more vulnerable when/IF we will have a correction.




SP500 Index (SPY ETF): Zoom In Zoom Out $SPY, $SPX,  USDX #Trading #dxy  #usdollar #SP500 #spy 



Financialiceberg.com
SP500 Technology Sector Bullish Percentage Index (Daily Candles)

​Chart courtesy of Stockcharts.com​

Financialiceberg.com
SP500 Index ( SPY ETF - Daily Candles )
20 DMA ( Yellow Line ) 
​50 DMA ( Red Line )​
200 DMA ( Green Line )​​
Weekly Ratio (Candles )
Technology Sector (XLK ETF)
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​SP500 Index (SPY ETF)
Daily Ratio (Candles)
SP600 Small Cap Index (PSCT ETF)​
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​SP500 Index (SPY ETF)

Daily Ratio (Candles)
SP500 Index (SPY ETF)
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iShares MSCI ACWI ex U.S. ETF (ACWX ETF)​
Financialiceberg.com
Financialiceberg.com
Financialiceberg.com