July the Percent of Funds with Positive Relative Strength for the Mid Cap Growth [RSPMUUS6] reversed up into a column of X’s at 36% after producing a higher bottom. Growth assets, by and large, have been out of favor for many years now, sometimes as far back as 2000 relative to other assets, but this reversal up suggests that Growth assets are attempting to assert themselves in this volatile market.
But the positive signs from the Growth assets don’t stop at just the Mid Cap asset class. Nearly a month later the same Percent Positive Relative Strength chart indicator for the Small Cap Growth arena [RSPMUUS9] reversed into a column of X’s. This suggests that the average Small Growth fund or ETF is now likely to outperform the equal weighted market. As well, a mere few days later, the Percent Positive RS chart for Large Cap [RSPMUUS3] reversed up as well. So now, not only are we beginning to see the Growth areas across the broad begin to suggest outerperformance against the overall market, but it is interesting that it is the Large Cap Growth assets as well that are showing these positive signs are well.