Source: kimblechartingsolutions: tech-small-cap-ratio-testing-rising-support-june-29.jpg (1296×679)
tech-small-cap-ratio-testing-rising-support-june-29.jpg (1296×679)
The trend remains up in tech. The rally off the 2016 lows, now has the NDX testing the top of this rising channel at (1). A 2-year rising support test is in play this week at (2), creating a tight jam between resistance and support. Tech bulls would prefer this rising support line holds!
The following NDX:VXN ratio shows that NDX is sitting in a precarious spot at a rising trendline, but well below what is now major resistance. All 3 indicators are still in "SELL" mode.
http://cdn2.socialtrade.com/comsys/imgs/NDX_vs_VXN_Ratio_ggS6AO_m. png
Compare that to where the RUT:RVX ratio is sitting...just above major support, but all 3 indicators are signalling weakness in the RUT, with the potential of rising volatility. We'll see if Small Caps get hit by sellers next.
http://cdn2.socialtrade.com/comsys/imgs/RUT_vs_RVX_Ratio_tlobpT_m. png