The Bulls are back! It is rare to see a turnaround in all the major markets, but every one of the seven indexes tracked here at ITA switched from bearish last week to bullish this week. More specifically, there was at least a 3% shift in the number of individual stocks within each index that moved from bearish (O’s in the right-hand column) to bullish (X’s in the right-hand column). Here is the link of what this looks like for our primary index, the New York Stock Exchange (NYSE). The big question still remains, will this trend continue? I suspect the bullish trend will continue as this switch happened despite the coming elections, health concerns in Africa, and continued trouble in the Middle East.
Index BPI: Not only did we see a shift from bearish to bullish in the BPI indicators, this is happening with many of the indexes positioned not all that far above the buy zone of 30%. Had we had the 10% expected correction, several of the indexes would likely have dipped below the 30% line. As you will see when the Gauss is reviewed later this morning, several of the equity ETFs moved above SHY in the rankings, another indicator this past week showed a major turnaround.
Sector BPI: Energy was one of the major beneficiaries of the turnaround this week as it moved from a low 4.54% bullish position all the way up to 25%. Health also experienced a nice percentage jump. Instead of only one (Utilities) sector in the hands of the offense, we now have eight.
November and December historically tend to be good months for the U.S. Equities market so I am expecting this positive trend to continue.