Q3 Technical Leaders Allocations

July 11, 2012

Each quarter the PowerShares DWA Technical Leaders Indexes are rebalanced; the stocks with strong relative strength stay in the index and those that have deteriorated are replaced. The tables below show where we are overweight and underweight compared to their benchmarks this quarter.

Source: Dorsey Wright, MSCI, Standard & Poor’s

Performance of the technical leaders indexes has generally been favorable so far this year:

See www.powershares.com for more information. A list of all holdings for the trailing 12 months is available upon request.

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High RS Diffusion Index

July 11, 2012

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 7/10/12.

The 10-day moving average of this indicator is 77% and the one-day reading is 76%.

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