Since the 2009 lows, the Mid-Cap 400 Pure Growth ETF (RFG) has doubled the gains of the S&P 500, reflected in the chart below. I doubt anyone would “have a beef” owning this ETF over the 500 index since 3/2009.
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The chart below reflects that RFG made new highs 90 days later than the 500 index did a year ago. Once this relative strength leader broke support last year, the 500 index fell hard.
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RFG has made no net gains for the last 4 months, as it has chopped sideways. Keep a close eye on the relative strength leader since rising support is closing in fast. A break of this support would not be good for the broad markets!
