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Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!

Wednesday, January 08, 2014

SPX -- Relative Strength Against The World

The US stock market remains in a powerful RS uptrend against the world's other bourses
although clearly the RSI has been more range bound over the past couple of years. Note
that the US RSI index is again testing resistance against the MSWORLD index in a range of
.96 - .98 SPX vs. MSWORLD The current test comes at an interesting moment because
global economic performance excluding  the US has been picking  up a bit in relative strength
just as monthly data in the US could be set to come off a very strong short term run. As well,
since the Fed's big QE 3 program helped the relative strength of the SPX, future curtailment
of the growth of the QE program in a period of broadening global economic growth could
pose a challenge to the relative advantage of the SPX.

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