Bullish Percent Indicators: 26 January 2024

Mono Lake Tufa – California near Route #395

When financial news reports the stock market is either up or down the information is generally referring to the 30 Dow Jones Industrial stocks.  While the DJIA forms a significant percentage of the U.S. Equities market it does not tell the whole story.  Left out of this news is the entire international market.  The following Bullish Percent Indicator data is also quite provincial in that it is U.S. based.  Keep that in mind when you look over the following two data tables.

What the BPI data provides is a deeper dive into sectors of the market and from the news this week the U.S. Equities market is not as robust as one might gather from the DJIA data.

Index BPI

Only two of the seven major indexes are positive this week.  Of note is the strong performance in the transportation average as it jumped 10 percentage points from 70% bullish to 80% bullish.

We see slight improvement in the NYSE and NASDAQ which indicates a few of the smaller cap stocks are improving.  A few stocks held in the S&P 500 turned bearish, not a particularly good sign, but not too worrisome either.

Sector BPI

The takeaway from the following sector table is that no sectors are oversold.  Therefore we don’t see any buying opportunities for sector ETFs.

For investors using the Sector BPI investing model, check your portfolio to make sure Trailing Stop Loss Orders (TSLOs) are in place for Financial, Industrial, Technology, and Real Estate sector ETFs.  Cash in the portfolio is a high probability so look for buying opportunities in the area of U.S. Equities (VOO, VTI, or ESGV).

As January comes to a close the Einstein and Huygens are scheduled for review.