From the Desk of Alfonso Depablos @Alfcharts
Relative strength is one of the most essential tools we employ on a daily basis.
Analyzing relative trends allows us to determine whether an asset is outperforming a benchmark or its alternatives.
This increases our chances of success as we navigate the markets.
Even though the stock market has been trading sideways since July, the relative trends are very much in favor of technology these days.
Below is the equal-weight Technology Sector (RSPT) breaking out of a 3-year base relative to the equal-weight S&P 500 (RSP):