Check out the May Bullish Percent Indicators. As you look over the following two screenshots, use the X’s and O’s on the right side as a quick overview of what is happening to U.S. Equities. I pay most attention to the NYSE and NASDAQ indexes as they carry the largest number of companies. For more precise information, check the percentages on the left side of the screenshots.
Since these are weekly sums there are almost always anomalies between the two sides of the tables. For example, the five percentage point jump from 70% to 75% in the DJTA is sufficient to generate an X. Instead, we see an O for the transportation average. What happens is there is a sufficient change at the end of the week to impact the Bullish Percent Indicator graph. This is another reason for paying more attention to the percentages if looking for detailed information.
U.S. Equities improved this week as every major index shows an increase in the percentage of bullish companies. All but the NYSE and NASDAQ are over bought. This is telling me that many of the smaller companies are not performing as well as the larger companies.
When breaking the broad market down into sectors we nearly always see a different picture. Seven of the ten sectors have O’s when we check the Point and Figure (PnF) graphs. However, seven of the ten are over bought. One classic anomaly is Energy. Note the dramatic percentage rise from 60.87% up to 78.26%. Yet the PnF graph still shows an O. There was likely a significant price drop for many energy companies on Friday that caused this divergence.
The big picture is that most of the equities market is over bought. Yet there is no general trend either up or down. I would not be surprised if the market sputters through the summer unless a major infrastructure bill passes Congress.