Relative strength is a concept used in investing and technical analysis to compare the performance of one asset or security against another over a given period of time. It measures the strength or weakness of an asset relative to its peers or a benchmark index.
According to the Global Industry Classification Standard (GICS) there are 11 sectors into which S&P has categorized all major public companies.
The charts above display the relative strength for each US stock market sector by comparing its price performance to the S&P 500, a widely used benchmark index. When the ratio rises, the sector outperformed the market - and when it falls, the sector underperformed.
Applying relative strength analysis to sectors is particularly valuable in facilitating sector rotation strategies. By identifying sectors demonstrating robust relative strength, investors can strategically allocate their investments, seeking to capitalize on sectors with positive momentum.
The chart above gives a different view of the same data from the ratios above. Presented below are brief sector descriptions along with some example companies.
An error appeared while loading the data. Maybe there is a technical problem with the data source. Please let me know if this happens regularly @silvan_frank.