Why compare against SPY
Relative strength compares a stock against a benchmark so the chart can show whether the symbol is leading or lagging the broader market. SPY is a practical benchmark for US stock workflows because it represents broad market behavior.
A stock that holds up while the benchmark pulls back may be showing leadership. A stock that rallies less than the benchmark may be lagging even if its own price is green.
- Compare symbol behavior with benchmark behavior
- Watch whether relative strength makes higher highs
- Look for leadership during market pullbacks
- Use it as context, not as a standalone signal
How Market Radar uses it
Ready Setup models use relative strength as one quality input. It helps prioritize candidates that behave better than the broader market, especially in momentum and breakout workflows.
Relative strength can change quickly when market regime changes, so it should be reviewed with price structure and volume.