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SP500/TSX60 PVT: A Tale of Two Worlds?
March 10 2016 ( From TradingView, Stockcharts )
March 10 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)
On SPY ETF:
- PVT is finally back at 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 Resistance Trendline that started back on December 2 2015.
(See First Chart Below - Top Panel - Thick Red Trendline)
- SPY is at only 6.7% from its peak reached on May 20 2015 and 10.1% 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 Major Resistance Trendline that started back on April 29 2015. (See Second Chart Below - Bottom Panel - Thick Amber Trendline)
- XIU ETF already is in break out mode as it get over a Major Resistance Trendline that started back since April 27 2015. (See Second Chart Below - Top Panel - Thick Red Trendline - Ellipse)
- XIU is down 12.8% from its peak reached on April 15 2015 and 16.3% 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 are near breaking the resistance trendline from a Major Falling Wedge that started since May 2009. Breaking that resistance will bring a strong outperformance of the Canadian Stock Market over the Americain one...
( See Third Chart Below - Red Trendlines -Ellipse ).
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)
On SPY ETF:
- PVT is finally back at 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 Resistance Trendline that started back on December 2 2015.
(See First Chart Below - Top Panel - Thick Red Trendline)
- SPY is at only 6.7% from its peak reached on May 20 2015 and 10.1% 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 Major Resistance Trendline that started back on April 29 2015. (See Second Chart Below - Bottom Panel - Thick Amber Trendline)
- XIU ETF already is in break out mode as it get over a Major Resistance Trendline that started back since April 27 2015. (See Second Chart Below - Top Panel - Thick Red Trendline - Ellipse)
- XIU is down 12.8% from its peak reached on April 15 2015 and 16.3% 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 are near breaking the resistance trendline from a Major Falling Wedge that started since May 2009. Breaking that resistance will bring a strong outperformance of the Canadian Stock Market over the Americain one...
( See Third Chart Below - Red Trendlines -Ellipse ).
"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
-Sun Tzu, the Art of War
SP500/TSX60 PVT: A Tale of Two Worlds? $SPY, $XIU #Trading #investing #xiu #spy #SP500
Price Volume Trend - a Definition
(from Stockcharts.com)
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.
(from Stockcharts.com)
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 )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
Price Volume Trend ( Bottom Panel - Blue Line )
Financialiceberg.Com
TSX60 Index ( XIU TEF - Top Panel )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
Price Volume Trend ( Bottom Panel - Blue Line )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
Price Volume Trend ( Bottom Panel - Blue Line )
Financialiceberg.com
RATIO
TSX60 Index (XIU ETF)
over
SP500 Index (SPY ETF)
Daily Candles
TSX60 Index (XIU ETF)
over
SP500 Index (SPY ETF)
Daily Candles
Financialiceberg.com