Based in data from the NYSE Point and Figure (PnF) graphs, this continues to be a market of large-cap stocks. The DJIA is all large cap companies and it is performing much better than the NYSE – as is the S&P 100. Until we see improvement in mid- and small-cap companies, expect to see a choppy market.
Index BPI: Even though the percentage remained the same, the DJIA moved from offense to defense this week. That move is likely due to some changes that happened during the week and I don’t pick up those variations with my weekly update. Of course this is assuming the weekend data is correct. Watch to see what is reported next week. Over half of the major indexes are now under the control of the defense, not a bullish signal.
Sector BPI: Market sectors mirror the major indexes in that the Bullish Percent Indicators (BPIs) are mixed. Technology moved from the defensive team over to the offense – a positive signal. Watch Staples as another downward move will shift it out of the over-bought zone. Cells coded in red are over-bought while green cells are over-sold.
Overall, I see no direction in this market. Be patient and stick with the highest ranked ETFs based on the Kipling Tranche 2.2 spreadsheet.