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SP500/TSX60 PVT: A Tale of Two PVTs?
​June 06 2016 ( From TradingView, Stockcharts  )
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The Situation

We observed that the Price Volume Trend (PVT) of the SP500 (SPY ETF)
​tend ​to ​turn ​earlier ​and or confirm the trend of the SP500 as you may
​see ​in 1rst the chart below. The same idea for the TSX60 Index (XIU ETF).

Since we broke the Major Support Trendline on the TSX60 Index (XIU)
and the Major Rising Wedge Support Trendline on August 20 2015 on
​SPY​​, ​ ​PVT level cratered to reach a lower level that the ​previous ​​severe ​
​correction on October 2014. ​(See Charts Below - Bottom Panel - Ellipses)​

XIU recovered sooner than the SP500 Index as PVT tested ​the October
​2014 zone on August 28 2015 but SPY was far from ​that level.​

​​As SPY PVT get stronger from February 11 2016 lowest level in that
​cycle and double bottom in price on SPY, XIU PVT low was already in
​place ​since January 20 2016, showing tremendous technical strength.​
(See First and Second Chart Below - Top and Bottom Panels)​

-​ PVT is finally back slightly above the August 24 2015 level and very far of ​the
​mid 2014 low and facing tremendous ​resistance 
(See First Chart Below - ​Bottom Panel - Thick Red Trendline)
- Testing a Major Resistance Trendline that started back on May 20 2015.​​​
(See First Chart Below - Top Panel - Thick Grey Trendline)​  
- SPY is at only 1.6% from its peak reached on May 20 2015 and 16.1% from its bottom in price
​reached on January 20 2016.

​In the case of XIU ETF:
-​ PVT is not only back at the August 24 2015 level but also at the mid 2014 level and showing tremendous ​momentum 
(See Second Chart Below - Bottom Panel - Thick Red Trendline - Ellipse) ​and already broke a Resistance Trendline that started back on April 20 2016. ​(See Second Chart Below - Bottom Panel - Thick Red Trendline)​ 
- ​XIU ETF  is near to get into a breakout mode as it get over a Major Resistance Trendline that started back since April 20 2016. (See Second Chart Below - Top Panel - Thick Blue Trendline - Ellipse)​
​- XIU is down 7.9% from its peak reached on April 15 2015 and 22.9% from its bottom in price reached on January 20 2016, then outperforming tremendously the Mighty SPY ETF.

But the most interesting technical factor is that on a Relative Basis ​(XIU ETF over SPY ETF), we already broke the resistance trendline from a Major Falling Wedge that started since May 2009 (See Third Chart Below - Red Trendlines -Ellipse)​. and above the 200 DMA (Day Moving Average) on that ratio. (See Third Chart Below - Green Line -Ellipse)  

Since we  broke that resistance will bring an outperformance of the Canadian Stock Market over the Americain one...​​


"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

SP500/TSX60 PVT: A Tale of Two PVTs? $SPY, $XIU  #Trading #investing #xiu #spy #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 )

TSX60 Index ( XIU TEF - Top Panel )
​​20 DMA ( Yellow Line )
50 DMA ( Red Line )​​
​Price Volume Trend ( Bottom Panel - Blue Line )
TSX60 Index (XIU ETF)
SP500 Index (SPY ETF​​​)
Daily Candles​
200 DMA ( Green Line)​