Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

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 6/5/12.

diffusion6612 High RS Diffusion Index

The 10-day moving average of this indicator is 33% and the one-day reading is 23%. Dips in this indicator have often provided good opportunities to add to relative strength strategies.