The RS chart is not so much about overall direction as much as
which major sectors are currently showing strength or weakness
RELATIVE to the market (SPY). That said it doesn't mean the current
RS will necessarily continue as the sectors can move back and forth
in RS vs the market like an osillator. It's more a starting point
to go investigate the individual chart and see if it looks like the
short term trend will continue or reverse to the mean.
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SPY with RS lines 1min chart
Posted by bkout3 on 29th of Sep 2011 at 01:55 pm
link
IWM and QQQ weak RS, GLD strong
Any idea or hints of direction here?
Posted by garyl on 29th of Sep 2011 at 02:32 pm
The RS chart is not
Posted by bkout3 on 29th of Sep 2011 at 02:39 pm
The RS chart is not so much about overall direction as much as which major sectors are currently showing strength or weakness RELATIVE to the market (SPY). That said it doesn't mean the current RS will necessarily continue as the sectors can move back and forth in RS vs the market like an osillator. It's more a starting point to go investigate the individual chart and see if it looks like the short term trend will continue or reverse to the mean.