Based on the reading of the Jd K RS-Ratio it is still the third strongest sector in the S&P 500, so we should monitor its rotation and potentially look for a rotation back-up while inside the weakening quadrant and get on the board again. A few weeks ago it looked as if Visa was on its way to start another up-leg in relative strength when the RS-Line attempted to break above the resistance of its trading range while both RRG-Lines had already crossed above 100 and price rallied to a new high.
Key Takeaways:
- The above Relative Rotation Graph holds the 30 Dow Jones Industrial components
- In this post, I want to dissect some of the individual financial components inside the Dow Jones Industrial index.
- Financials are followed by Industrial and Energy and to a lesser extend Consumer Discretionary. The relative strength of the Technology is rotating lower at the moment, into the weakening quadrant.
“The recent rally in price is stalling near the old support line which will now act as resistance as well as the newly emerging falling resistance line which connects the recent highs.”
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