FINANCIAL ICEBERG
Always consider hidden risks
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 TECHNICALS
Russell 2000 (TWOK ETF): Data Compression?
​August 09 2016 ( From TradingView )
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​The Situation
​
The Russel 2000 Index (TWOK ETF) is at Technical Croosroads ​to ​say the 
​least. Few of us realize that the TWOK ETF Breakout happened earlier 
​than the SPY ETF (on May 24 2016 to be precise) compare to July 8 2016
​for the SP500 Index (SPY ETF). ​(See First Chart Below - Red Trendline - Ellipse)​

​​Here is some Technical Observations:​​​
​1) TWOK ETF is now at 29.7% (unadjusted for dividends) from its bottom 
​reached on February 11 2016 ​and SP500 (SPY ETF) is at only 20.4%​​​​. 
​
​​2) TWOK ETF from highest peak price (reached on June 23 2015) to the 
​lowest ​price yet (reached on ​February 11 2016) was 27.2% and only 15.2% for ​the Mighty SP500 (SPY ETF). ​​​​

3) TWOK ETF is far from making a new high as it is trading 5.5% below its previous peak price reached on June 23 2015 at 76.48. Closing price as of August 8 was 72.23.
​​
TWOK ETF had its first Breakout mode on May 24 2016 as it went over a Major Resistance Trendline that started since June 23 2015. (See First Chart Below - RedTrendline) 
​It ​is still trading within a steep Rising Wedge Channel since June 27 2016. ​(See First Chart Below - Wedge).

​​​​​So the TWOK ETF outperformed tremendously lately the Mighty SP500 Index (SP ETF) on a relative basis (ratio of TWOK over SPY) but is is still quite far from peak relative price. Interesting to note that this ratio reached the bottom of this cycle on February 9 2016.

​​But the real interesting part is that it is that at a time were the TWOK ETF is testing price wise its resistance trendline, it is also tesying the major resistance trendline on a relative basis that started back since April 28 2016. ​(See Second Chart Below - Blue Trendline - Ellipse).
​ 
In fact, the real technical battle is on the Data Compression (steep Weekly Rising Wedge) we had since April 25 week that shows that a major breakout OR breakdown will occur soon as shown by the third chart below.

Also quite crucial to observe is that the Relative Volatility (Russell 2000 RVX to SP500 Index VIX daily ratio)
already rising tremendously and reflecting some behavior change from market participants. The real battle is on between the high liquidity SP500 and the lower liquidity Russell 2000; usually could be seen near market peaks.​ (See Fourth Chart Below - Blue Line)
​​





Russell 2000 (TWOK ETF): Data Compression?  $SPY, $IWM  #Trading #russell2000 #SP500 


Daily RATIO
TWOK ETF vs SPY ETF ( Candles )
​​20 DMA ( Yellow Line )
​50 DMA ( Red Line )​
200 DMA ( Green Line )​
​









Financialiceberg.Com


TWOK ETF
Weekly Candles​ - Right Scale
​4 WMA ( Yellow Line ) 
​12 WMA( Red Line ) 
52 WMA ( Green Line )



Financialiceberg.Com


Financialiceberg.Com


TWOK ETF
Daily Candles​ - Right Scale
​20 DMA ( Yellow Line ) 
​50 DMA ( Red Line ) 
200 DMA ( Green Line )






Daily RATIO
Russell 2000 Volatility (RVX) vs SP500 Volatility (VIX) ( Blue Line )
​​20 DMA ( Yellow Line )
​50 DMA ( Red Line )​
200 DMA ( Green Line )​
​



Financialiceberg.Com