Indexes "Band of Brothers Edition 2.0 " Decoding the relation!!!
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In a nutshell, divergences between small caps and SP500 index has a kind of leading volatility relation " Heads up" kind of a signal !!!
*** When you see minus " -.59 / -.62 " Divergence's reading between SPX & SLY You need to be out of the market period. *** When you see minus " -.48/ -.65 " on RUSSELL 2000'S INDEX you need to be out of the market period. *** SPX 600 has 10 signals Vs. 7 for RUSSEL. ( 3 more signals for SP600) ***SPX 600 has 4 lagging signals VS. 6 for RUSSEL 2000. ( 2 less lagging signals) *** SPX 600 has a Median of 36 days Vs. 57 for RUSSEL 2000. ( SP600 better Median) *** ETFs are slightly better than indexes in the sense that they are more "SENSETIVE.
-----------------------------------------DATA------------------------------------------------------------------- Lagging Lagging # SINGNALS # SINGNALS MED.RUS Med.SPX russel spx 600 6 4 6 10 57 36.5 62 2 Percentage SPX'S DAYS FOR A PULLBACK RUSSELL 2000 SPX'S DAYS FOR A PULLBACK S&P SMALL CAP 600 61 36 10% Laggeing by 3 days 2 Days heads up 36 13 35% NO SIGNAL !!! 36 days before Covid 19 57 91 20% Double signals 62 days & 8 days 13 days 28 37 12% 61 days Triple signals: 91 days & 81 days & 38 days 48 35 3% Lagging by 1 day NO SIGNAL 91 28 3% Lagging by 9 days Lagging by 8 days 67 3% NO SIGNAL !!! 37 Days 61 5% Lagging by 7 days Lagging by 7 days 91 13% 36 Days 35 days 4%+10% 1 day + 57 days from double pullback NO SIGNAL 2% Lagging 1 day Lagging 1 day 11% 28 days 28 days 21% NO SIGNAL !!! 67 days 6% 48 days 61 days SLY STOPPED HERE 8% 91 days 91 days IJR USED HERE INSTEAD 31% Lagging during a crash 35 day lagging during a crash 35 day During a crsh NO SIGNAL During a crash During a crash
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Keep this handy guys we might need it sooner than we think !!!