Bullish Percent Indicators are essentially flat since the last update. For new readers, BPI information provides a broad view of market action and this week shows few changes. Little description is required to understand the following tables as the numbers and color coding tell the story.
- Numerical values at 70% and higher indicate an over valued market.
- Numerical values at 30% or lower indicated and under valued market. This is infrequent over the past six years.
- X’s indicate the index or sector is bullish and in the hands of the offense.
- O’s indicate a bearish market or in the hands of the defense.
Index BPI: The one major change this week is that the NASDAQ 100 moved from defense to offense. Since the broad NASDAQ moved slightly, we know it is the large cap tech stocks that are strongest. While no single index is over-valued, most are above 50%. This is still not an inexpensive market.
Sector BPI: There were no offense-defense changes this week and two sectors (Staples and Materials) continue to be over-valued. Telecom and Utilities are better buys if one is investing in sectors. Overall, the sectors reflect the status of the broad indexes as we continue to see a rather rich market.