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 3/4/2013:
How could one create such a chart if I wanted to follow this spread? Thanks
In order to create a similar chart on your own, you would need to rank a universe of securities by relative strength rank, and then divide the performance of the top quartile of the ranks by the bottom quartile of the ranks and then plot it on a chart. This particular RS Spread is proprietary and only published here.
Thank you for the insight and analysis. – Mike