There have been 416 consecutive trading days the 50-day average has been above the 200-day average in the High Momentum vs. Low Momentum ratio.
Here’s the chart:
Let's break down what the chart shows:
The black line in the top panelis the relative ratio of the Dow Jones US High Momentum Index versus the Dow Jones US Low Momentum Index.
The black line in the bottom panelis the number of consecutive days the 50-day moving average is greater than the 200-day moving average.
The Takeaway: This is a clean, consistent trend — and one that’s gaining strength.
This ratio measures how high momentum stocks are performing relative to low momentum stocks.
In short, it tracks whether the market is favoring leaders or laggards.
Right now, it’s all about the leaders.
The ratio has been in a steady uptrend since early 2023, carving out higher highs through orderly consolidations, and is now breaking out to fresh all-time highs with no signs of fatigue.
When high momentum stocks lead, it signals confidence.
Investors are chasing strength, not hiding in laggards.
This is what you see in uptrends supported by broad risk appetite.
That’s not what you see in bear markets.
This kind of leadership confirms the rally has real depth.
Not narrow.
Not defensive.
But driven by what’s working.
As long as high momentum continues to outperform low momentum, the bulls have the upper hand.
This 416-day trend confirms that leadership is intact.
And risk is still being embraced.
Is this the market’s version of “don’t fight the strong”?
Grant Hawkridge | Chief Aussie Operator, All Star Charts
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