The Traderszone Network

Published in TZ Latest News 13 September, 2015 by The TZ Newswire Staff

Relative Strength Anomaly

Last week I highlighted CVI and Participation Index readings I had never seen before. This week I want to point out some useful relative strength behavior I just noticed for the first time. My focus is on the S&P 500 SPDR (SPY) and the S&P 500 Equal Weight ETF (RSP). I have long been partial to equal weight indexes because in bull markets they typically perform much better than their cap-weighted counterparts. Case in point, note how RSP advanced +343% from the 2009 price low versus only +252% for SPY, meaning that RSP performed +36% better than SPY.

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