RS Diffusion Index

The chart below measures the percentage of high relative strength stocks that are trading above their 50-day moving average (universe of mid and large cap stocks.) As of 3/23/10.

The 10-day moving average of this indicator is 95% and the one-day reading is 97%. This oscillator has shown the tendency to remain overbought for extended periods of time, while oversold measures tend to be much more abrupt.

This entry was posted on Wednesday, March 24th, 2010 at 10:31 am and is filed under Markets. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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One Response to RS Diffusion Index

  1. Nihar Dalal, CFA says:
    March 28, 2010 at 9:57 am

    This looks like a good twist of the oft used indicator. Do you know of any research that exists on this? Thanks

    Nihar

    Reply

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