FINANCIAL ICEBERG
Always consider hidden risks
 TECHNICALS
Russell 2000 (TWOK ETF): At Technical Crossroads?
​January 11 2017 ( From TradingView )
If you would like to receive our free daily markets updates, please Sign-Up



The Russel 2000 Index (TWOK ETF) is within a Trumpification phase ​to ​say
​the
least; Make Small Businesses Great Again! 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 - Yellow Trendline - Ellipse)​

​​Here is some Technical Observations:​​​
​1) TWOK ETF is now at 18.0% (unadjusted for dividends) from its bottom
​reached on November 4 2016
​and SP500 (SPY ETF) is at only 8.7%​​​​.

​​2) TWOK ETF from its highest previous 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 just made a new high on December 14 at 82.99. Closing price as of January 10 2017 was 80.53. TWOK ETF closed at 12.5% above its 200 DMA (Day Moving Average) and SPY ETF only at 5.7% above.

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 - Yellow Trendline - Ellipse) 

It ​did break for the Second time on November 21 2016 the Resistance Trendline from a Daily Uptrend Channel. ​(See First Chart Below - Top Blue Trendline).
It is more obvious to see the Second Breakout from a Weekly Chart. ​​(See Second Chart Below - Blue Trendline - Ellipse).
We are now back testing that Major Trendline (now Support) so critical for Bulls to protect...

​​​​​So the TWOK ETF outperformed tremendously lately (especially since the US Election til December 9) the Mighty SP500 Index (SPY ETF) on a relative basis (daily ratio of TWOK over SPY).

​​But the real interesting part is that it is that the TWOK ETF on a relative basis failed to Break the previous Major Resistance Zone. ​(See Third Chart Below - Yellow Trendline).
​ 
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. The Relative Volatility (based on the 20 DMA (Day Moving Average) is at its highest level since June 2014! 
(See Fourth Chart Below - Yellow Line)
​​Higher Relative Volatility in a Low Volume Phase usually in the past bring some corrective action to the SP500 Index. (Bottom Chart - Vertical Lines) Make the Stock Market Liquidity Great Again!

Russell 2000 (TWOK ETF): At Technical Crossroads? $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 - Top Panel )
​​20 DMA ( Yellow Line )
​50 DMA ( Red Line )​
200 DMA ( Green Line )​
SP500 ETF ( SPY - Bottom Panel )​

Financialiceberg.Com