The chart below is the spread between the relative strength leaders and relative strength laggards (universe of mid and large cap stocks). When the chart is rising, relative strength leaders are performing better than relative strength laggards. As of 11/15/2010:
RS leaders and laggards continue to perform similarly-as they have for roughly the last 18 months. Relative strength leaders have historically shown a tendency to assert themselves as bull markets age. From that perspective, we believe it is likely that we will see a rising spread in the coming years.
