Relative Strength Spread

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 10/8/2012:

spread100912 Relative Strength Spread

The RS Spread recently broke above its 50 day moving average—a potentially good sign for relative strength strategies.

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