Based on intuition, I expected to find most of the index and sector BPI values in the offensive camp. Not so as there were a few major shifts. Energy moved out of the over-sold zone and the Dow Jones Transportation Average took a big hit. Health moved around sufficiently within the week ending down in percentage but over in the camp of the offense. We see this “contradiction” enough to expect it every few months.
Index BPI: The two major indexes, NYSE and NASDAQ showed an increase in the percentage of bullish stocks. This is the good news, but it was not sufficient to carry over into all the indexes. Enough large-cap stocks moved down this week to carry the NASDAQ 100, DJIA and DJTA into bearish territory or over to the defensive camp. All three have O’s in the right-hand column.
Sector BPI: Sectors of the market did not do much better as Industrial and Materials flipped from offense to defense. Health made the move back to offense where it was two weeks ago. The big winner this week is Energy as it moved over 10 percentage points to the upside.
No big trends are observed. Moves this week are what I consider market noise. A downward trend is when we see more moves out of the over-bought zone (70% and higher) and more indexes and sectors in the defensive camp. Those two changes have not happened since 2008.