The Growth/Value relationships we track are mixed across the spectrum; Large Cap Growth/Value has held up relatively well in this environment during what could be considered the extreme ends of the relationship ARKK/DEEP as it continues its bearish trend. International Growth/Value has failed a major breakout attempt, and Small Cap Growth/Value continues consolidating after the recent breakout awaiting further directional confirmation. For those investors whose size and style mandate, the levels highlighted below offer zones to both monitor and manage risk.
S&P 500 Growth Relative to S&P 500 Value
The S&P 500 Growth/Value ratio has pulled back to test long-term relative support at both the March lows and the breakout zone of last month above the ratio’s rising 50-day moving average. RSI has rolled over to the downside through the 60 zone, the upper limit of a prior bearish momentum regime. RSI is flashing a danger sign, and Growth bulls want to see the highlighted relative support zone hold to have confidence that the trend hasn’t materially weakened.
S&P 400 Growth Relative to S&P 400 Value
The S&P 400 Growth/Value ratio continues trading above the highlighted breakout zone and the March relative lows above the ratio’s rising 50-day moving average. RSI has been able to hold the 50 level from above, the upper bound of the prior bearish regime. Mid-cap bulls will want to see these highlighted levels continuing to hold to the upside.
S&P 600 Growth Relative to S&P 600 Value
Much like the relative price action in its larger peers, the S&P 600 Growth/Value ratio continues its consolidation pattern after breaking out of the March relative lows last month while trading above the ratio’s rising 50-day moving average. RSI has weakened in breaking down below the 60 zone, leaving the door open for a test of relative support at the highlighted zone.
EAFE Growth (EFG) Relative to EAFE Value (EFV)
The EAFE Growth/Value relationship has promptly reversed course to the downside through the highlighted breakout zone, trapped between relative resistance and the ratio’s rising 50-day moving average. RSI has broken down below the 60 zone over the past several weeks of trading, flashing yet another warning sign for this relationship.
ARKK Relative to Deep Value (DEEP)
Featured in our most recent episode of Who Charted? What’s on the Radar?, the ARKK/DEEP relationship continues to struggle below relative resistance at the highlighted zone below the ratio’s flat 50-day moving average. RSI continues printing values below the 60 zone, the upper bound of the bearish momentum regime that’s defined the trend since March of this year.
Disclosure: This information is prepared for general information only and should not be considered as individual investment advice nor as a solicitation to buy or offer to sell any securities. This material does not constitute any representation as to the suitability or appropriateness of any investment advisory program or security. Please visit our FULL DISCLOSURE page.