Below are Bullish Percent Indicator tables and graphs for all the major U.S. indexes and sectors of the equities market. As you will quickly note, there are numerous over-bought sections of the market. When any of the indicator push past the 70% bullish mark it behooves investors to be cautions. The NYSE moved into that zone this week.
Five of the seven indexes are over-bought. The S&P 500 and DJIA took major jumps, likely due to the same stocks causing these moves.
The DJIA is showing an O in the right-hand column when I checked the Point and Figure (PnF) graph. This was due to the decline at the end of the week. For the entire week, the DJIA moved from 70% bullish up to 86.66% bullish. Pay more attention to the percentage jump than what one sees in the right portion of the table.
All sectors but Health are over-bought. For this reason, I am setting tight (5% or below) TSLOs for holdings when the portfolios come up for review.
This will be a busy week as the Bethe, Millikan, McClintock, and Bohr are up for review. Only the McClintock is a Dual Momentum portfolio.
Here we have the graph of the NYSE. This graph goes back further in time than what is presented in the BPI indexes above.
The NASDQ index is not quite in the over-bought zone, but it did come within a whisker of touching the 70% mark at the end of the 6/5/2020 week when it hit 69.6%.
All the graphs and BPI data are letting us know it is time to be cautious, particularly in light of what could be a rough Covid-19 fall.