Based on the Bullish Percent Indicator data, the markets are not as bad as they seem. I expected to see nothing but red this week, but that is not the situation. Yes, Friday was a down day, but several sectors and broad indexes tell a different story. Be sure to check the percentages and the change from last week. While the X’s and O’s provide a quick picture, the percentages provide more details.
Index BPI: Three indexes moved from defense to offense this week. Every major index moved up with exception of the DJTA and it held even. I’m surprised as I did not expect to see this kind of resistance to what I perceived as a down market.
Sector BPI: While Health moved from offense to defense, the percentage of bullish stocks in the sector actually improved. This is why it is important to pay attention to the percentages. Only Materials dropped in the percentage of bullish stocks.
The overall market strength likely comes as a surprise to many readers.