Another week of heavy selling across the Dow Jones US Industry Groups, with only 14 of the 104 groups ending the week positive. So 86.5% of the groups had a negative week.
US Industry Groups by Highest RS Score
Above is the top 12 industry groups thumbnail charts by Relative Strength (RS) score.
Of note is the signs of distribution present in the leading groups over the last few weeks, which is a change of behaviour from what we've seen in these groups over the last few months, with some now looking like distributional structures and trading below their 50 day MAs.
US Industry Groups by Weakest RS Score
The weakest groups continue to push to new lows in Stage 4 declines with no signs as yet of stopping / climactic action.
104 Dow Jones Industry Groups sorted by Relative Strength
The purpose of the Relative Strength (RS) tables is to track the short, medium and long term RS changes of the individual groups to find the new leadership earlier than the crowd.
RS Score of 100 is the strongest, and 0 is the weakest.
In the Stage Analysis method we are looking to focus on the strongest groups, as what is strong, tends to stay strong for a long time. But we also want to find the improving / up and coming groups that are starting to rise up strongly through the RS table from the lower zone, in order to find the future leading stocks before they breakout from a Stage 1 base and move into a Stage 2 advancing phase.
Each week I go through the most interesting groups on the move in more detail during the Stage Analysis Members weekend video – as Industry Group analysis is a key part of Stan Weinstein's Stage Analysis method.
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Disclaimer: For educational purpose only. Not investment advice. Seek professional advice from a financial advisor before making any investing decisions.