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SP500 High/Low Beta ETFs: Divergence?
September 20 2016 ( From  TradeView, CNN Money )
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​​
The market participants never gave attention to that divergence that ​started
​from August 15 2016 (peak of SP500 Index at 2193.81) til now between Risk
​Taking behavior (stronger) and ​the ​Mighty ​SP500 Index (weaker - closed at
​2139.12 on ​September 19).
 ​​​​​​​​(See first chart below).

That Risk Taking behavior (according to the ratio of SP500 High Beta stocks -
SPHB ETF - to the SP500 Low Beta Stocks - SPLV ETF) is at the highest level
since April 2016 at only a few days of a Federal Reserve Meeting.​​ Dangerous
mix indeed!​

​​
​​​​The divergence is even more obvious on a weekly chart. As we reach now
April s 2016 level​ on
​the Risk behavior pattern, the SP500 is making Lower Highs.
​ ​​​​​​​​​​(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 Greed and as of September 19 is now at the Fear Level of 44.


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

1) The weak volume on the breakout (July 8 2016) on the SPY ETF. and the rising volume thereafter: chasing?
​(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.  It is testing the Support Trendline.
​ (See fourth chart below - Top Panel % of stocks - Bottom Panel SP500 Index).

We​​ are into an atypical Bull Market as the Central Banks are injecting Billions of $ into the system; may be that is why we have also atypical behavior from the traditional indicators?
SP500 High/Low Beta ETFs: Divergence?   $SPY  #Trading #risk #stocks  #SP500 #investing
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
SPY ETF ( 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