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 7/13/10.
The 10-day moving average of this indicator is 27% and the one-day reading is 59%. The rally over the last week is bringing this indicator out of deeply oversold levels. Dips in the High RS Diffusion Index have often provided good opportunities to add to relative strength strategies.
