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High RS Diffusion Index

The chart below measures the percentage of high relative strength stocks that are trading above their 50-day moving average (universe of mid and large cap stocks.)  As of 2/1/11.

High relative strength stocks don’t seem to be in too much of a hurry to pull back too far as the one-day reading of this indicator has now risen to 80% after getting down to 69% on Jan. 20.