The US Growth/Value ratio is at a critical juncture, according to David Sneddon and his team at Credit Suisse in London.

Sneddon points to daily and weekly bearish RSI momentum divergences (see Chart), which suggest a more protracted retracement lower for the ratio. Key support is at the 63-day moving average (at 202.38), a close below which can see a top established to add weight to his view for a more sustained phase of Growth underperformance. The next support level beyond this is at the 195.10 July low.

Conversely, Sneddon says a close above 207.75 is needed to ease the topping threat.

See Chart.