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ProfitHarvest
Oct 4, 2020 10:27 PM

[SPXL/SPX x SPX] SPXL Megaphone Puts SPX Megaphone to Shame! Short

AMEX:SPXL/SP:SPX1W
SPXL/SPXArca

Description

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SPXL Megaphone pattern is broader and what's worse is that Price only made it just over HALFWAY back up rather than all the way back to the top again as SPX achieved.

Now SPXL Price is barely hanging on at dead center of the Megaphone and the trend here is overwhelmingly more BEARISH than the SPX trend would suggest.

I pegged these two starting from the first peak in the megaphone. Another reason I'm looking for much more downside to come.

Comment

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This is what the start and end of a decade long bull run looks like...
Trend AnalysisChart PatternsFundamental AnalysisSPX (S&P 500 Index)SPXLS&P 500 (SPX500)
Comments
DaddySawbucks
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SPXL is a 3x ETF with time decay, which is significant, the divergence can be explained by simple depreciation of asset
ProfitHarvest
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@DaddySawbucks, it’s not SPXL, it’s SPXL/SPX (normalized to directly comparable ratio).

Massive diverg here and looks even worse normalized than just directly comparing...


Basically means fewer bulls are willing to make the most hardcore SPX long bet (3x leverage) than At anytime in the past decade.
DaddySawbucks
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@ProfitHarvest, Ahh i c ty for clarity, it's a ratio, fascinating!
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