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US Stocks Industry Groups Relative Strength Rankings

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US Industry Groups by Highest RS Score

Above is the top 12 industry groups thumbnail charts by Relative Strength (RS) score, of which the Energy groups continue to dominate in the top 4 places. But of note this week was the big volume reversal bars on Tuesday 31st May in all of the Oil groups, with strong reversals across numerous stocks in the Oil groups, of which the group charts have been unable to commit above through the first 3 days of June. 

So some distributional behaviour appearing in Energy sector groups, but they remain the overall strongest RS groups currently. Hence it will be important to see if Tuesdays highs can be overcome in the coming week, or whether more distribution appears at the highs again.

US Industry Groups by Weakest RS Score

The Automobiles group moved back to the bottom of the RS table once more due the decline in TSLA on Friday, which is it largest component. With the bounce in the group stalling at the Stage 4 breakdown level which it dropped below three weeks ago. So it continues to potentially be in early Stage 4. However, it could yet recover back into the Stage 3 range if it can form a higher low and then make a near term breakout above the pivot high that formed this week, as that would turn the Stage 4 breakdown into a Wyckoff Spring and Test pattern. But if the demand doesn't appear, then a bigger Stage 4 decline could begin to develop.

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 videoas 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.