TradingSurfers

Beware of the Reversal in the Growth/Value Stock Ratio!

IVW/IVE  
IVW/IVE  
Here is a very important chart: the ratio between growth stocks and value stocks.
Wave 3 could be ending soon as we just touched the ML of the PF and hit the 200% extension of W3 vs W1.
We are seeing an extended 5th within W3 which could top at 1.90 with a daily bearish divergence on the RSI .
If this count proves to be correct, we will see NDX under-perform the SPX whatever the direction of indices.
As you can see, each time this ratio corrected, we witnessed some turmoil on the markets to say the least...

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