FINANCIAL ICEBERG
Always consider hidden risks
 TECHNICALS
Financial Markets:  A Broader View?
 July 1 2016 ( From TradingView )
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The Situation


We just start to realize how deep the correction at the beginning of the year
​was on the ​​​US equity market: On the low made on January 20 2016 at 181.02
​on the SP500 Index (SPY ETF), even if few realize that the SPY ETF ​now
​trade ​well above that level (209.48 as of June 30). ​(See first chart
 below)
​​​
Rebounding from those abyssmal technical levels was quite a statement
​from Mr Market in January 2016 and February as a double bottom emerged
​and since then we keep making Monthly higher highs and higher ​lows for
the Mighty SP500 Index. (See first chart below - Monthly Candles)

But few of us realize that we are now at the resistance of a Monthly
​Downward Channel for the Mighty
​SP500 Index (SPY ETF) (See first chart below -
​Downard Channel - Ellipse)
on a weak Monthly Volume trading environment.

Some technical indicators and statistics:

1) SPY ETF is at only 2.0% from its peak reached on May 20 2015.​
​​( See first chart below )​
​2) SPY ETF is in fact far of testing the Monthly Major Support Trendline that started back on March 2009. ​​​
( See first chart below - Thick Blue Trendline )
3) SPYETF closed on the Monthly Major Resistance Trendline from a Downward Channel that started back on May 2015. ​​​​(See first chart below - Downward Channel - Ellipse )​

​Also quite interesting to have a broader view of the financial market in other asset classes. As the SPY ETF is at the Monthly Resistance Level, the TLT ETF (iShares 20+ Year Treasury Bond ETF) is quite near of a Major Monthly Resistance Trendline that started back in December 2008. (See second chart below - Blue Trendline - Ellipse)

​Gold price is also at the Major Resistance Trendline that started back since August 2011 on a Monthly basis as shown by the third chart below. 

​​​​​But the most interesting technical factor is that at a time were we have the SPY ETF, TLT ETF and Gold prices at / near Major Resistance Monthly Trendlines, we have Dr Copper near its Major Monthly Support Trendline that started back in October 2002. ​(Bottom Chart - Grey Trendline - Ellipse)

Too much money from Central Banks can inflate Financial Assets like the SPY ETF  but only a stronger economic activity can trigger an upwave in copper, iron ores... 





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"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

Financial Markets: A Broader View? $SPY #investing #bonds #SP500 #gold #copper

TLT ETF ​( iShares 20+ Year Treasury Bond ETF - Monthly Candles )

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SP500 Index ( SPY ETF - Monthly Candles )

Gold Futures ( Monthly Candles ) 

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Copper Futures ( Monthly Candles ) 

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