[pcabc]

Market breadth based on Mansfield Relative Strength, in the context of Stages

I think putting the Manfield RS based indicators in the context of the Stage based indicators I worked on previously is more useful.  Below I have legthend the time window and included my % stage indicators.

   

In this chart we can see that the rise in the % stocks wth their RS above the zero line rises,crossing 50% following a big increase in the % stocks in Stage 2.  This makes sense.

The % +ve RS then peaks as the % stocks in Stage 2 starts to decline.  At the point at which the stocks in Stage 3 peaks the % stocks with a +ve RS crosses down below the 50% line.  % stocks in Sage 4 start to rise.  Yrd, the index rises for another 6 months, but the underlying breadth is weakning.  I suspect that being sucessful with Stage analysis, at least for myself, in this period would be challenging.

On the right hand side we have a fallback in both the new RS based indicators and % Stage 2 stocks and an increase in % Stage 4.

So I think this is something to look at in the context of the stages.