RS-Ratio (x-axis): Relative trend vs SPY. >100 = outperforming.
RS-Momentum (y-axis): Direction of change. >100 = improving.
Rotation: Sectors rotate clockwise through quadrants: Improving → Leading → Weakening → Lagging.
Faber Composite: Avg of 1, 3, 6, 12-mo returns. Top 3 highlighted green. Only valid when SPY > 10-mo SMA (risk-on).
ETFs: Invesco equal-weight sector ETFs (RSP*) for cleaner rotation signals.
ETF Reference
Sector
EW
CW
Liq.
Technology
RSPT
XLK
Med
Financials
RSPF
XLF
Med
Energy
RSPG
XLE
Low
Materials
RSPD
XLB
Low
Industrials
RSPN
XLI
Med
Cons. Disc.
RSPC
XLY
Low
Cons. Staples
RSPS
XLP
Low
Healthcare
RSPH
XLV
Med
Utilities
RSPU
XLU
Low
Real Estate
RSPR
XLRE
Low
Comm. Svc.
RSPE
XLC
Low
EW = Equal Weight (Invesco, used for signals) CW = Cap Weight (SPDR, better for execution) Liq.: SPDR ETFs avg 5-50M shares/day. Invesco EW ETFs avg 50K-500K — use limit orders. RSPT & RSPF are most liquid (~300-500K). RSPD, RSPU, RSPR are thinnest (~50-100K).