Relative Strength vs S&P 500 (SPX/ES)

Relative Strength vs S&P 500

This indicator measures the relative performance of an asset compared to the S&P 500, helping traders and investors identify whether an asset is outperforming or underperforming the broader market.

The calculation is based on a price ratio between the selected asset and the S&P 500, optionally normalized to a base value (100) for easier interpretation.

How to read it:

Above the baseline (100) → the asset is outperforming the S&P 500

Below the baseline (100) → the asset is underperforming the S&P 500

Rising line → strengthening relative performance

Falling line → weakening relative performance

Why it’s useful:

Helps focus on market leaders, not just assets that “look cheap”

Filters trades and investments in the direction of relative strength

Useful for swing trading, long-term investing, and portfolio allocation

Widely used in institutional and professional asset management

This indicator is best used as a trend and selection filter, in combination with technical setups (support/resistance, VWAP, structure).