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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