Relative Strength in Relation to an Equity Index.

Shows the values of the utility and the finance components of the NYSE Common Stock Indexes for the end of each of 12 months from November 2000 through October 2001. Values for the NYSE Composite Index are also given.

NYSE Indexes

Utility

Finance

Composite

November

434.95

592.35

629.78

December

440.54

646.95

656.87

January

442.5 1

641.37

663.64

February

406.01

603.76

626.94

March

394.69

585.48

595.66

April

421.41

604.65

634.83

May

406.49

625.1 1

641.67

June

376.61

626.65

621.76

July

370.92

616.58

616.94

August

346.92

585.54

597.84

September

340.74

549.41

543.84

October

323.46

543.16

546.34

We divide each industry index value by the NYSE Composite value for the same month and then scale those results so that relative strength for November 2001 equals 1.0.

Relative Strength lndicators

RSTR Utility

RSTR Finance

November

1.000

1.000

December

0.971

1.047

January

0.965

1.028

February

0.938

1.024

March

0.959

1.045

April

0.961

1.013

May

0.917

1.036

June

0.877

1.072

July

0.871

1.063

August

0.840

1.041

September

0.907

1.074

October

0.857

1.057

State the relative strength of utilities and finance over the entire time period November 2000 through October 2001. Interpret the relative strength for each sector over that period.

2. Discuss the relative performance of utilities and finance in the month of April 2001.