Comparación de SPX y S5TH (Índice de componentes de SPX que están por encima de su 200DMA). Se ve claramente una divergencia entre ambos que comenzó el 24/04/21. Claro las divergencias pueden durar mucho tiempo... hasta que se resuelven. Finalmente SPX siguió el camino marcado por S5TH que estaba mostrando un deterioro interno de SPX. Podemos ver que S5TH está atrapado en un canal de precios bajista y bien abajo de su propio 200DMA. En Trading View pueden ver esa comparación en un plazo mayor y comprobar que para buenos avances de SPX es necesario que S5TH esté por encima de su 200DMA. También está señalado en el gráfico que el precio donde cerró S5TH el pasado viernes, es un muy importante nivel de Soporte/Resistencia que ha coincidido con tops/lows del SPX. Si sumamos este gráfico al diario de VIX y su canal de precios, además del cierre de SPX en importante resistencias, podemos asegurar que habrá un retracement del SPX este mismo lunes que quizás se extienda por varios días y que devolverá una buena parte de las ganancias adquiridas en los últimos 4 días. Para que este rebote nos convenza de que estamos en una nueva pierna alcista S5TH debe cerrar por encima de su 200DMA o salir de su canal bajista de precios.
Comparison of SPX and S5TH (SPX component index above its 200DMA). You can clearly see a divergence between the two that started on 4/24/21. Of course divergences can last a long time... until they are resolved. Finally SPX followed the path set by S5TH which was showing an internal deterioration of SPX . We can see that S5TH is trapped in a bearish price channel and well below its own 200DMA. In Trading View you can see that comparison on a longer time frame and see that for good SPX advances it is necessary for S5TH to be above its 200DMA. It is also pointed out in the chart that the price where S5TH closed last Friday (that's the 50% line, is a very important Support/Resistance level that has coincided with tops/lows of the SPX . If we add this chart to the daily VIX and its price channel, in addition to the SPX closing at important resistances, we can assure that there will be a retracement of the SPX this Monday that may extend for several days and that will return a good part of the gains acquired in the last 4 days. For this rebound to convince us that we are in a new bullish leg S5TH must close above its 200DMA or break out of its bearish price channel.
We can see that S5TH is trapped in a bearish price channel and well below its own 200DMA. In Trading View you can see that comparison on a longer time frame and see that for good SPX advances it is necessary for S5TH to be above its 200DMA.
It is also pointed out in the chart that the price where S5TH closed last Friday (that's the 50% line, is a very important Support/Resistance level that has coincided with tops/lows of the SPX . If we add this chart to the daily VIX and its price channel, in addition to the SPX closing at important resistances, we can assure that there will be a retracement of the SPX this Monday that may extend for several days and that will return a good part of the gains acquired in the last 4 days.
For this rebound to convince us that we are in a new bullish leg S5TH must close above its 200DMA or break out of its bearish price channel.