Healthy, is the prognosis of the U.S. Equities markets. The offensive teams are in control of every major index and sector of the market. The only sector to show a percentage decline was Health, but the downward move was insufficient to flip the BPI from offense to defense.
Index BPIs: For the fourth consecutive week, all major indexes are bullish as indicated by X’s in the right-hand column. Our primary index, the NYSE, is still fairly valued at the 57.57% bullish level. The S&P 100 moved up into the over-valued zone and it has been a few weeks since the DJIA and DJTA did the same. We are still waiting for a 10% to 15% correction that would push some of these indexes below the 30% level. That would provide better buying opportunities.
Sector BPIs: Drilling down into the individual sectors shows the overall market is still strong. Energy is the weakest sector as oil prices continue to decline. Regular gasoline dropped below $3.00 per gallon in some areas of the country, but not in the Northwest. As mentioned above, Health is the only sector to show any percentage decline. Telecom and Utilities remain even and that is no surprise as those two sectors don’t vary much from week to week.
The data this week is telling us there are opportunities for the broad market to continue to rise as conditions for upward movement are better than they were back in late July.