S&P 500 relative rotation
The eleven S&P 500 sector SPDRs plotted against SPY. Each tail is a path through relative strength and momentum — where a sector sits matters less than the direction it is travelling.
The horizontal axis is relative strength — how a sector has performed against SPY, normalised so that 100 is the benchmark. The vertical axis is the momentum of that relative strength: whether the sector is gaining ground or giving it back. Together they split the plane into four quadrants, and money tends to travel clockwise through them.
Still behind the index, but the gap is closing. Early money arrives here.
Ahead of the index and still pulling away. The crowded trade.
Behind and falling further behind. The waiting room.
Still ahead of the index, but losing steam. Money is leaving.
Tail sets how far back each sector's path is drawn. At 1 you see only today's position; longer tails show the route it took to get there, which is what tells you whether a sector is arriving or leaving. Animate replays the last stretch of history so you can watch the rotation unfold. Drag Date to rewind the whole chart to any past point.
The maths is the standard JdK-style construction, computed from split- and dividend-adjusted closes:
This is a description of price behaviour, not a recommendation. Rotation signals are noisy at the edges, and a sector sitting near the centre of the chart is telling you very little.